TaxTMI 
TaxTMI 
2022 (8) TMI 223
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....e short question that arises for consideration herein is, whether the claim for non-liability on consignment transfer/stock transfer in terms of Section 6 A of the Central Sales Tax Act, 1956 (for the sake of brevity, 'the CST Act') can be sustained, on the strength of declaration in "Form F" allegedly issued by a dealer, who was found to be bogus/nonexisting/ fictitious. 2. The petitioners were engaged in the manufacture and sale of gingelly oil cake at Erode. During the assessment years 1993-94 and 1994- 95, the petitioner in WP.Nos.14515 and 14517 of 2007 had reported turnover of Rs.29,17,244/- and Rs.61,55,172/- and claimed exemption on consignment/stock transfer to an extent of Rs.10,89,566/- and Rs.17,02,936/- in terms of S....
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....stained; and accordingly, rejected the claim of the petitioners in terms of Section 6 A of CST Act. On appeals, the First Appellant authority set aside the orders of the Assessing Officer and allowed the claim of consignment transfer under section 6A of the CST Act. However, when the matters were carried in appeals to the Tribunal, the orders of assessment came to be restored and the claim of consignment transfer under Section 6 A of the CST Act, stood rejected, by the Tribunal. 4. Aggrieved by the above order of the Tribunal, the petitioners have filed the present writ petitions. 5. Learned Counsel for the petitioners submitted that the obligation of the despatching dealer or the dealer effecting the consignment / stock transfer woul....
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....eclaration form of a dealer found to be non-existent/fictitious, which is nothing but a fraud played on the State, must also be extended the benefit of a valid declaration. 9. In this regard, it may be relevant to refer to the following decisions to show that if sale is a sham or dealer is non-existent, then, any benefit claimed on the basis of such sale /dealer, is a nullity: a) Daluram Pannalal Modi V Assistant Commissioner of Sales Tax [(1963) 14 STC 675]: "In the re-assessment proceedings however it was found as a fact that Gajanand Satyanarayan was a name only and that no real person bearing that name ever existed. That finding cannot be challenged in the present proceedings and that being so, it seems to us that t....
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....tration, we do not find any ground to differ from the view taken by the Tribunal". d) State of Andhra Pradesh v. Manohara Trading Company 1996 SCC Online AP 432 [Refer to page no.176] "5...By mere cancellation of the registration certificates the dealers do not cease to be identifiable unless the cancellation itself is on the ground that they are fictitious and unidentifiable" 4) It is thus clear that mere production of tax invoice though relevant if the genuineness is not doubted however would lose its relevance/significance if the very transaction (or) existence of dealers allegedly involved in the transaction are questioned. (emphasis supplied) 10. Yet another reason, as to why the Form "F" Declaration wo....
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....ined as criminal deception, use of false representation to gain unjust advantage; dishonest artifice or trick. According to Halsbury's Laws of England, a representation is deemed to have been false, and therefore a misrepresentation, if it was at the material date false in substance and in fact. Sec. 17 of the Contract Act, defines fraud as act committed by a party to a contract with intent to deceive another. From dictionary meaning or even otherwise fraud arises out of deliberate active role of representator about a fact which he knows to be untrue yet he succeeds in misleading the representee by making him believe it to be true. The representation to become fraudulent must be of fact with knowledge that it was false. In a leading English....