2019 (7) TMI 915

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....8. 2. Assessments finalized against the revision petitioner under the Central Sales Tax Act (CST Act, for short) with respect to the years 2003-04 and 2004-05 were set aside by the Deputy Commissioner, in exercise of the powers vested under Section 35 of the Kerala General Sales Tax Act (KGST Act, for short). The Assessing Authority was directed to make enquiry into genuineness of the 'C' Forms produced by the revision petitioner, claiming payment of concessional rate of tax. The Assessing Authority, through Annexure A order passed on 30.12.2013, finalized the assessment doubting the genuineness of certain 'C' Forms produced with, respect to both the years, and rejected the claim for concessional rate of tax allowed based ....

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....uld be completed within a period of 4 years from the last date of the year to which the return relates. However, relying on another decision of a Division Bench of this Court in Sales Tax Officer Special Circle 2, Kozhikode v. C.C. Transport Company [(1997) 40 SCC 594], the Tribunal found that, in a case where the revisional authority had passed an order under section 35 of the KGST Act and remitted the matter to the Assessing Authority, the time limit stipulated under Section 17 cannot operate against the said authority to finalize the assessment in the place of the assessments already set aside. Therefore, the question of time limit agitated against the impugned assessments was negatived by the Tribunal. We do not find merit in the argume....

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....to merits, as found by the first appellate authority, the Assessing Authority has not collected any relevant or convincing materials to arrive at a conclusion that the disputed 'C' Forms were bogus. It is pertinent to note that the Assessing Authority has not conducted any verification with the tax officials of the state from which those 'C' Forms were issued, regarding its genuineness. Section 35 of the KGST Act enables the Deputy Commissioner to pass an order directing to make such enquiry as he deem fit. The re-assessment on the basis of such an order has to be made only based on an enquiry and only based on convincing materials. As pointed out in the order of the first appellate authority, the Department, under special i....