TMI Blog2023 (4) TMI 759X X X X Extracts X X X X X X X X Extracts X X X X ..... e present case, there is no dispute that the purchasing dealer was duly registered with the Rajasthan Tax Authorities in respect of the goods sold by the petitioner. There is also no dispute that the C Forms are genuine and had been issued by the concerned authority at the material time - the benefit of the C Forms cannot be denied to the petitioner. It is necessary to bear in mind that C Forms are an integral part of the consideration received by the selling dealer. The commercial bargain struck by dealers factors in the value of these forms. The effect of denying the benefit of the C Forms would amount to rewriting a commercial transaction that has been consummated. The cancellation of C Forms at a subsequent date would have a disrupti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he selling dealer who had furnished the C Forms was registered with the Rajasthan Tax Authorities in respect of the goods purchased by the petitioner at the material time. 6. The question whether any irregularity in the issuance of C Forms would preclude the assessee from benefits of the same, is no longer res integra. 7. In the case of State of Madras v. Radio Electrical Ltd. and Anr. : 1966 (18) STC 222 (SC), the Hon ble Supreme Court had held that, where C Forms submitted by a purchasing dealer state that the goods were intended to be used for a particular purpose and the purchasing dealer misapplied the goods, the selling dealer was under no obligation to ensure that the goods were applied for the purposes as represented by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be where the C Forms are forged; in which case the same would be require to be treated as non-existent. 10. The aforesaid decisions rest on the rationale that a dealer is entitled to rely on such forms as a part of it bargain if the dealer furnishing the forms is a registered dealer in respect of the goods in question. The dealer accepting the forms is not required to undertake any a detailed investigation regarding whether the issuance dealer has complied with all laws. Any liability regarding non-compliance of the relevant laws would rest with the dealer furnishing such forms and not the dealer that accepts these forms. 11. In the present case, there is no dispute that the purchasing dealer was duly registered with the Rajasthan Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Ward 57) Department of Trade Taxes, Government of NCT of Delhi Ors. : W.P.(C) 12142/2018 dated 14.11.2018 . This Court had rejected the contention that the benefits of the C Form would not be available to a dealer in such cases. The relevant observations of the Court are set out below: The Revenue's argument that since it did not pass an order cancelling the C Form, like in Jain Manufacturing but rather that a third party, outside the jurisdiction of this court, did so, is unpersuasive. As long as the Central enactment is interpreted in a particular manner, by a High Court empowered to do so, the question of the authority, wherever it is located, possessing the power - to wit, the authority to cancel the C Form retrospective ..... X X X X Extracts X X X X X X X X Extracts X X X X
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