AI Drafter 
TaxTMI 
TaxTMI 
2019 (1) TMI 898
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....55,49,165.48 as per the Form I returns filed under the Central Sales Tax Act, 1956 ("the CST Act" for short). The appellant's accounts produced earlier for check had accounted for total sales of Rs. 2,86,13,824.00 under the CST Act as shown below: Inter-State sales as per accounts - Rs. 55,40,350.00 Value of goods sold to Inter-State consignee - Rs. 2,30,73,474.00 Total - Rs. 2,86,13,824.00 The Assessing Officer found that the appellant had not reported the consignment despatches as required under the CST Act. He also found that the inter-State sales were overstated by Rs. 8,815.00 (Rs. 55,49,165.00 - Rs. 55,40,350.00). This difference being not reconcilable, the Assessing Officer proposed to treat this turnover as unaccounted sales for bringing them under the tax net. The Assessing Officer noted that though the appellant had not reported inter-State consignment despatches as required, it had filed the following documents in support of the consignment transfers: (1) Statement of consignment sales showing monthwise and agentwise details of consignment despatches along with particulars of G.C. notes. (2) Consignment sale pattials received ....
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....cer overruled the appellant's objections. The Assessing Officer held that though the appellant had filed the copies of lorry receipts, those lorry receipts are not found to contain any evidence to show that the goods were delivered at the warehouses or business premises of the concerned agent duly accounted for in their stock account. Copies of the goods consignment notes raised by the appellant were not filed. Mere statements were filed. Hence facts could not be verified. The Assessing Officer further observed that the details of remittances of sales proceeds of the goods by the agents were not produced for verification. The addresses of the agents where the goods were sent or consignments were delivered were not disclosed nor any proof of existence of such warehouses and actual delivery of the goods at that place could be ascertained from the records produced by the appellant. The Assessing Officer, further, observed that in view of this, the correctness of Form 'F' declarations could not be verified and bona fide nature of the consignment transfers could not be ascertained. The Assessing Officer further observed that some of the consignments were sold in the same quantity in whi....
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.... produced transport documents in support of proof of consignment transfers and other related statements of accounts. The appellant submitted before the Appellate Assistant Commissioner that merely because the documents were not presented in the required form that will not make the appellant ineligible for exemption on consignment sales. Taking note of all the documents and the submissions, the Appellate Assistant Commissioner held that the appellant must be given an opportunity to produce the documents which are in its possession. He, therefore remanded turnover of Rs. 2,36,39,542/- to the Assessing Officer for giving the appellant one more opportunity to produce the documents for claiming exemption on consignment sales. Question of levy of penalty was also consequently remanded. On remand, the Assessing Officer vide order dated 30.09.2002 restored the original assessment order. He observed that the appellant was required to produce the following documents: 1. Copies of Agreement entered into with the Agents in other states. 2. Copies of indents placed, if any, by the Agents for sending the goods. 3. Copies of stock Transfer Invoices. 4. Copie....
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....ts. (c) Form -13 Register filed by the appellant contains details such as invoice number and date, State to which consignment was moved, name of the agent, commodity, quantity, value, vehicle number and Form 'F' declarations. (d) The sale pattials filed by the appellant contain details such as delivery challan number, vehicle number, lorry receipts number and date, lorry freight, quantity received, value, quantity sold, tax collected, the bill number and date which prove that the consignments which moved out of State were accounted for and taxes were paid thereon. Details of remittances would be available in the sale pattials. (e) Consignment sales statement shows month-wise and agent-wise details of consignment despatches along with particulars of GC notes, consignment sales pattials received from the inter-State agents, consignor copies of transfer documents (LR) and copies of consignment agreements. The Appellate Assistant Commissioner was not impressed by the observation of the Assessing Officer that the lorry receipts in respect of consignment transfer did not contain any evidence to show that the goods were delivered at the warehouse of the conce....
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....clarations were supported by record. He, therefore, allowed the appeal and set aside the levy of tax at 11.6% on the turnover of Rs. 2,36,39,542/- which was treated by the Assessing Officer as arising out of inter-State sales. Order of penalty was also set aside. Being aggrieved by this order, the State of Tamil Nadu preferred an appeal being STA 411 of 2005 to the Tribunal. The said appeal was allowed by the Tribunal vide its order dated 19.10.2012 which is impugned in this appeal. Mr. V.V. Sampathkumar, learned Counsel for the appellant submitted that the appellant has filed the necessary documents as observed by the Appellate Assistant Commissioner in his order dated 18.08.2004. The Tribunal has not considered those documents and wrongly held that the appellant has failed to prove its claim for exemption. Counsel submitted that the Tribunal has wrongly observed that the appellant has failed to disclose consignment transfers in the books of accounts when in fact they are clearly reflected in the books of accounts. Counsel submitted that by filing Form F declarations, the appellant has discharged the burden and hence the impugned order be set aside. Mr. K.V. Vijaya Kumar,....
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....at the Appellate Assistant Commissioner has observed that the consignment agents had duly accounted for all the transactions and filed Form F declarations which contain the details. Besides admittedly sale pattials have been filed. They have been referred to in the original assessment order. They have been verified by the Assessing Officer. According to the Appellate Assistant Commissioner the sale pattials also contain the required details and therefore observations of the Assessing Officer that lorry receipts did not contain any evidence to show that the goods were delivered at the warehouse of the agent and were duly entered into in the stock account, accepting it to be true may not by itself disprove the appellant's claim. It is, therefore, necessary for the Tribunal to examine the sale pattials and Form 'F' declarations. It is observed by the Assessing Officer that addresses of the warehouses of the agents are not disclosed therefore actual place of delivery of goods could not be ascertained. In this connection, it is important to note that the Appellate Assistant Commissioner has observed that the consignment agreements are on record. This is accepted by the Asses....
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....f accounts and the annual returns do disclose the turnover regarding consignment transfers. This aspect needs to be looked into. There is another important aspect of the case which needs to be noted. The appellant has filed Form 'F' declarations. Filing of Form 'F' declaration is of vital importance to a dealer who claims that he is not liable to pay tax because there are no inter-State sales. Section 6A(1) of the CST Act states that where any dealer claims that he is not liable to pay tax under the CST Act, in respect of any goods, on the ground that the movement of such goods from one State to another was occasioned by reason of transfer of such goods by him to any other place of his business or to his agent or principal, as the case may be, and not by reason of sale, the burden of proving that the movement of those goods was so occasioned is on that dealer and for this purpose he may furnish to the assessing authority a declaration, duly filled and signed by the principal officer of the other place of business, or his agent or principal as the case may be, containing the prescribed particulars in the prescribed form obtained from the prescribed authority, along with the evide....
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.... transfer of goods had taken place otherwise than by way of sale. Indisputably, the burden would be on the dealer to show that the movement of goods had occasioned not by reason of any transaction involving sale of goods but by reason of transfer of such goods to any other place of his business or to his agent or principal, as the case may be. For the purpose of discharge of such burden of proof, the dealer is required to furnish to the assessing authority within the prescribed time a declaration duly filled and signed by the principal office of the other place of business or his agent or principal. Such declaration would contain the prescribed particulars in the prescribed form obtained from the prescribed authority. Along with such declaration, the dealer is required to furnish the evidence of such dispatch of goods by reason of Act 20 of 2002. In the event it fails to furnish such declaration, by reason of legal fiction, such movement of goods would be deemed for all purposes of the said Act to have occasioned as a result of sale. Such declaration, indisputably, is to be filed in Form F. The said form is to be filled in triplicate. The prescribed authority of the transferee Stat....
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.... by the dealer are 'true'. As a quasi-judicial authority, the assessing authority should act fairly, and reasonably in the matter. During the course of the enquiry, under Section 6-A (2) of the Act, it is open to him to require the dealer to produce relevant documents or other papers or materials which are germane or relevant, to find whether the particulars contained in the declaration (F forms) are 'true'. It is not possible to specify the documents or other materials or papers that may be required, to be furnished in all situations and in all cases. It depends upon the facts and circumstances of each case. The power vested in the officer is a wide discretionary power, to find, whether the particulars contained in the declaration (F forms) are 'true'. It is not possible or practicable to lay down the exact documents or materials that may be required in all the cases, by the assessing authority, to come to a proper and just finding as required by Section 6-A(2) of the Act." The Supreme Court then observed that the order of an authority under Section 6A is conclusive for all practical purposes. Thus after receipt of Form 'F' declaration, it is the duty of the Assessing Office....
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.... F declarations are filed he has to either accept them as true or reject them as untrue if his inquiry discloses so. He should record a finding one way or the other. In this case, the Assessing Officer in his original order dated 28.02.1998 has on the contrary accepted that he has not conducted any enquiry. He has stated that "correctness of Form 'F' declarations could not be verified". The reason for this inability to verify correctness of Form 'F' declaration is stated to be non-filing of documents. The Assessing Officer in his original assessment order has admitted that the appellant filed sale pattials, consignment agreements, copies of consignor, copy of transport documents, statement of consignment sales showing monthwise and agentwise details of consignment despatches along with particulars of G.C. notes. The Appellate Assistant Commissioner in his order dated 18.08.2004 has referred to several documents. It is difficult therefore to come to a conclusion that the Assessing Officer was unable to make any enquiry because of lack of documents. There is no positive statement made in the order that the Assessing Officer has found the Form F declarations to be untrue. There ....