TMI Blog2014 (8) TMI 894X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tually used in the generation and distribution of electricity in the rural areas of India. Under clause 9.2 and 9.3 of the contract concessional sales tax/trade tax Form-C/ Form-3D was to be arranged and issued by the Chief Executive Officer of PVVNL to the petitioner. Pursuant to the aforesaid contract, the petitioner purchased electrical goods worth ₹ 9,26,96,152/- from outside the State of U.P. In assessment proceedings the books of accounts and transactions was accepted by the department but the Assessing Officer imposed the tax at the rate of 10% in the absence of Form-C not being filed by the petitioner as prescribed under Section 8(4)(a) of the U.P. Trade Tax Act. This Form-C was required to be issued by PVVNL evidencing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eard Sri Shubham Agrawal, the learned counsel for the petitioner and Sri C.B. Tripathi, the learned Standing Counsel for the State and Sri Nripendra Mishra, the learned counsel for the PVVNL. The contention of the petitioner is, that he had purchased the goods from parties from outside the State of U.P. and had supplied it to PVVNL. The petitioner was entitled to receive Form-C from PVVNL in terms of the contract but the same could not be issued to him on account of a restraint order issued by respondent no.3 restraining respondent no.4 from issuing such Form-C. The learned counsel contended that as a result of this restraint order, respondent no.4 could not issue Form-C, as a result of which, the petitioner has become liable to pay the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t there is a provision for settlement of dispute through arbitration and, therefore, if there is any dispute between the petitioner and PVVNL the same could be settled through arbitration. No counter affidavit has been filed on behalf of respondent no.5, namely, the Chief Executive Officer, Electricity Distribution Circle PVVNL, Moradabad. The learned counsel for the petitioner contended that pursuant to the contract it was obligatory on the part of PVVNL to issue Form-C so that the petitioner could avail the concessional rate of tax. The learned counsel contended that when the Act envisages that a concessional rate of tax would be payable on the production of Form-C it could not have been the intention of the legislature to defeat th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at is required to be done under the Act. Since we find that the Managing Director of PVVNL is not registered under the Central Sales Tax Act, no mandamus can be issued to the said authority to issue Form-C. In Hindustan Vegetable Oils Corporation Ltd. Vs. Progressive Industries and others, 1995 (6) SCC 174 the Supreme Court held that if a party was not in a position to issue the declaration form it may not issue them but in such a case it shall reimburse the selling dealer in full for the difference of amount of tax, which the selling dealer was made to pay on account of the party failing to furnish the declaration form and also in respect of interest or the penalties, if any, imposed in that behalf and paid by the selling dealer. Tak ..... X X X X Extracts X X X X X X X X Extracts X X X X
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