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2014 (8) TMI 894 - ALLAHABAD HIGH COURTIssuance of Form C - Issue of writ of mandamus - Imposition of tax liability at enhanced rate - Held that:- When an Act provides a mechanism for payment at concessional rate of tax, a registered dealer would be entitled to avail this facility provided Form-C is given to him by the purchaser. Rule 8 of the Central Sales Tax Rules as applicable in the State of U.P. provides that Form-C can be issued by the department to a registered dealer. We find that the stand of the State that the Managing Director, PVVNL is only registered under the U.P. Trade Tax Act and is not registered under the Central Sales Tax Act has not been denied by the petitioner. Since the contract was entered between the petitioner and the Managing Director of PVVNL, Form-C could only be issued by the said Managing Director of PVVNL. The trade tax department was justified in restraining the Executive Engineer from issuing Form-C to the petitioner, who had nothing to do with the execution of the contract Under the contract, the petitioner was entitled to receive Form-C from the purchaser, namely, from the Managing Director of PVVNL. The said respondent was obliged to issue Form-C to the petitioner to enable the petitioner avail concessional rate of tax in his assessment proceedings. Since the petitioner did not receive Form-C from PVVNL the petitioner became liable to pay tax at a higher rate. We are of the opinion that the petitioner is entitled to recover the differential rate of tax etc. from PVVNL as per the contract. However, the writ jurisdiction is not the appropriate proceedings for recovery of the tax. We find that there is a contract between the petitioner and PVVNL in which there is a clause relating to arbitration for settlement of a dispute. We, are accordingly, of the opinion that no mandamus could be issued to PVVNL-respondent no.5 for issuance of Form-C. - Decided against assessee.
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