TaxTMI 
TaxTMI 
2022 (5) TMI 981
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....Locomotive Works, Varanasi, by not accepting the 'D' Forms in question received from the said Diesel Locomotive Works on the ground that the said purchasing company is a registered dealer and not a Government company and the respondent no. 1 raising an additional assessment under the Central Sales Tax Act for the period 4 quarters ending 31st March, 2005 being Annexure-P1 to the Writ Petition. Against the said assessment order petitioner had filed the appeal before the respondent no. 2 challenging the action of consideration of the said 'D' Forms received by the petitioner from the Diesel Locomotive Works which is a unit of Indian Railways. Appellate authority confirmed disallowing of the aforesaid 'D' Forms on the ground that the said deal....
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....e rate of 4 percent would be charged on production of 'D' Forms and said Diesel Locomotive Works were all alone entitled to issue 'D' Forms in their State for the purchases made by them all over India. Petitioner further submits that during the year 2001-02 and 2002-03 petitioner sold goods to the said Diesel Locomotive Works and 'D' Forms were issued by them to the petitioner in respect of the same and which were allowed and accepted by the respondent no. 1 both in the assessment order and in appeal without raising any dispute. In support of its such contention petitioner has annexed relevant documents being Annexure-P-6 to the Writ Petition. Petitioner submits that the said purchaser Diesel Locomotive Works is a unit of Indian Railways a....
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....r dispute which is as hereunder: "8. Rate of tax on sales in the course of inter-state trade or commerce- (1). Every dealer, who in the course of inter-state trade or commerce- (a) sells to the Government any goods: or (b) sells to a registered dealer other than the Government goods of the description referred to in sub section 3; shall be liable to pay tax under this Act, which shall be four per cent of this turnover. (4) The provision of sub-section (1) shall not apply to any sale in the course of inter-state trade or commerce unless the dealer selling the goods furnishes to the prescribed authority in the prescribed manner- (a) a declaration duly filled and signed by the registered dealer to whom the goods are sold containing....
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....ase order or certificate in Form D issued by them and hence, petitioner's claim of concessional rate of tax could not be denied merely because it was later on found by the respondent authorities that the said purchaser was a registered dealer. Petitioner submits that similar claim of sale made to the same Government on earlier occasions were regularly allowed by the respondent concerned in assessment for the past years on the basis of the said certificate in Form D and now the respondents could not take a different stand in subsequent year on similar facts and circumstances which is contrary to "Doctrine of Legitimate Expectation". Respondents have not denied in its affidavit-in-opposition this admitted fact that in past 'D' Forms relating....
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....g to Mr. E. R. Indrakumar, the appellant had no control over the Indian Railways. Admittedly, the Indian Railways belonged to the Government of India. It has furnished the "D" declaration on its own which assures that it is not a registered dealer. The certificate issued by the railways clearly states that it is not a registered dealer. This statement will have to be accepted by the appellant since the appellant has no control over the registration or otherwise of the dealer who purchased the goods from the appellant. 8. One cannot assume that every dealer is a dealer liable to be taxed under the Central Sales Tax Act and, therefore, it is not possible to assume that every dealer should be treated as a registered dealer and in such a situ....