2022 (5) TMI 981

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....of tax on sales made by it to M/s Diesel 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 '....

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....cifically mentioned in the order that tax at the 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 Diese....

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....(1) of the Act as prevailed at material period under 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 decl....

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....sed itself as a dealer registered under the Uttar Pradesh Trade Tax Act and Central Sales Tax Act either in purchase 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 Expectat....

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....ced, the said certificate is the "D" declaration form. If it is a case of registered dealer, the form is to be the "C" form. 6. According 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 un....

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....ernment has to purchase any good on full payment of tax. (iii) The judgment of Karnataka Dairy Development Corporation Ltd. Vs Commissioner of Commercial Taxes (supra) relied upon by the petitioner has no binding effect. Considering the exceptional facts and circumstances of the case, the submission of the parties and the aforesaid judgment of the Hon'ble Karnataka High Court in the case of Karnataka Dairy Development Corporation Ltd. (supra) and in view of admitted fact that in past the respondents have already accepted the 'D' Forms and allowed the petitioner the concessional rate of tax on the similar sales in their assessment orders and appeals relating to 2001-02 and 2002-03, this Writ Petition is allowed by quashing the im....