2006 (11) TMI 606 - HC - VAT and Sales Tax

Summary

Issues:
Petitioner sought issuance of form IIIB and form IIIC/1 from trade tax authorities governed by U.P. Trade Tax Rules, 1948. Refusal to issue forms based on alleged non-payment of tax dues. Justification for refusal and compliance with rules under contention.

Analysis:
The petitioner filed a writ petition seeking the issuance of specific forms governed by U.P. Trade Tax Rules. The court directed the trade tax authority to provide a reasoned order regarding the issuance or refusal of the forms. Subsequently, the Deputy Commissioner, Trade Tax, issued an order refusing to provide the forms based on the petitioner's alleged non-payment of tax dues. The petitioner contested this decision, claiming that all admitted taxes had been paid or deposited, with remaining amounts either under dispute or not due.

In response, the respondents justified the refusal based on non-payment of taxes, citing rule 85(4) which was deemed irrelevant to the forms in question. The petitioner emphasized the importance of equity in the writ jurisdiction, presenting receipts of payments made to support their claim. The court noted that non-payment of tax dues should not be a valid ground for refusing the forms sought, except in rare cases. The U.P. Trade Tax statute and rules provide a structured process for tax determination and recovery, and coercive tactics unrelated to tax recovery should not be employed.

The court found the impugned order lacking in valid reasons for refusal, as it did not establish that the demand for forms was not genuine and reasonable. Consequently, the court allowed the writ petition, setting aside the order based on irrelevant considerations. The trade tax authority was directed to re-examine the matter within three weeks of the court's order presentation, emphasizing the need for a reasoned decision in accordance with the court's observations.