TaxTMI 
TaxTMI 
2019 (5) TMI 498
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....directing the respondent No.3 to restore certificates of registration with effect from 01.07.2016 and to allow the Petitioner No.1 to generate "C" form declaration for the period from 01.07.2016 to 30.06.2017; and [b] That this Honourable Court be pleased to issue a Writ of mandamus or any other appropriate writ, direction or order quashing and setting aside the impugned Order, dated 25.10.2016 passed by the Respondent No.3, the Commercial Tax Officer (2), Unit 64, Surat annexed as Annexure-D hereto; and [c] That this Honourable Court be pleased to issue a Writ of mandamus or any other appropriate writ or direction to the Respondent No.2 to decide appeals filed before him under the Vat Act and the CST Act;" 4. The brief facts of the case are as under: 4.1 The petitioner No.1 is the authorized dealer of Chevrolet cars being manufactured by M/s Chevrolet Sales India Pvt. Ltd., which has two manufacturing units, one at Talegaon, Maharashtra and another in Halol, Gujarat. The petitioner No.1 was purchasing some models from Maharashtra plant and some from Gujarat plant and therefore, it had obtained Certification of Registration in Form 102 under the Gujarat Valu....
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....ation under the VAT Act and the CST Act with effect from 1.7.2016. 4.7 It is the case of the petitioners that as the respondent No.2 did not decide the appeals and the respondent No.3 did not restore the registration certificates of the petitioners, the petitioners have approached this court seeking the reliefs noted hereinabove. 5. Mr. Kuntal Parikh, learned advocate for the petitioners submitted that the respondent No.3, for non-payment of Entry tax, has suspended the registrations of the petitioners under sub-section (5A) of section 27 of the VAT Act, which is without jurisdiction, because, under sub-section (5A) of section 27 of the VAT Act, the Commissioner can exercise power of suspension if the dealer has failed to inform changes as required under sub-section (1) of section 26; or, has failed to furnish return under section 29; or, has failed to pay tax under section 30; or, has failed to file declaration or intimate the changes as required under section 65 or 66; or, has failed to produce the books of accounts required under section 67 of the VAT Act, and after recording the reasons in writing and after giving an opportunity of being heard, the Commissioner can suspen....
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....e, the learned advocate prayed that the "C" forms for the entire period from 1.6.2017 to 30.6.2017 are required to be issued by the respondents to the petitioners. 5.4 The learned advocate for the petitioners, in support of his contentions, placed reliance upon the judgment, dated 17/07/2017 passed by this Court in case of M/s. Manan Autolink Pvt. Ltd. v. State of Gujarat in Special Civil Application No. 4518 of 2017, wherein it is held that none of the rules prescribe that before the purchasing dealer can generate a request for authentication of 'C' form by the appropriate authority, the dealer must have discharged its full liability of VAT. It is also held that the action of the Respondents in not allowing the Petitioner to generate "C" form solely on the ground that the petitioner had not paid the self-assessed tax for the relevant period under the VAT Act is illegal. It was therefore, held that granting of "C" form declarations cannot be stalled on the ground of unpaid dues of a dealer, indirectly taking such measure by way of tax collection and recovery. Relying upon this judgment the Petitioner stated that pursuant to the order of suspension, the petitioner is unable to is....
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.... within month and therefore, there is no question of issuance of 'C' form. It was therefore, submitted that the suspension of the registration certificate of the petitioner is just and proper and therefore, no interference is warranted in view of the appeals before the respondent No.2 filed by the petitioners. 7. In rejoinder, the learned advocate for the petitioners submitted it has already filed its quarterly returns along with its annexure for the period from 01.10.2016 to 31.12.2016 on 14.02.2017 and for the period from 01.01.2017 to 31.03.2017 on 06.07.2017. These returns were filed manually because the registration of the petitioner was suspended by the Respondent No. 3 on 25.10.2016 and such suspension was effected from 01.07.2016. Learned advocate for the petitioner referred to affidavit in rejoinder filed by the petitioner and submitted that accountant of the petitioner provided copy of manual returns on 04.12.2018 to the Respondent No. 3 as it was requested by him, after filing of the present petition. It was therefore submitted that it cannot be said that the Petitioner had filed its returns for the first time on 04.12.2018. It is further stated by the Petitioner in i....
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....n 65 or 66; or (e) has failed to produce the books of accounts required under section 67, the Commissioner may, at any time, for reasons to be recorded in writing and after giving the dealer an opportunity of being heard, suspend his certificate of registration from such date not earlier than the date of order of suspension, as may be specified by him in the order." 9. On bare perusal of the aforesaid provision which grants powers to the Commissioner to suspend the registration of a dealer, it is crystal clear that such power can be exercised only for the failure on the part of the dealer to pay the tax under section 30 of the VAT Act. Further, under sub-section (27) of section 2 of the VAT Act, "tax" means a tax leviable and payable under the Act on sales or purchase of goods and includes lump sum tax leviable or payable under section 14, 14A, 14B, 14C or 14D. 10. Admittedly, on the facts of the case, the order of suspension of registration of the petitioners is passed on failure of the petitioners in non-payment of Entry tax, which is evident from the documents produced along with the affidavitin- reply filed by the respondents wherein it is revealed that ....