2011 (8) TMI 1032 - HC - VAT and Sales Tax

Revision petition - Whether the Tribunal was justified in declining opportunity to obtain and produce C forms which were not available even when the matter was heard by the Tribunal Held that - Revision is filed challenging the order of the Tribunal which in our view was completely in favour of the petitioner. However the further relief the petitioner wants beyond what the Tribunal has granted is further time to obtain and produce C forms for the balance turnover. We do not think the Tribunal has any such powers to grant indefinite time to obtain C forms for production at any time the dealer wants. In fact C forms should have been produced at the assessment stage itself and even for accepting belated C forms the assessee has to furnish explanation. Rightly or wrongly the Tribunal took a lenient view in petitioner s case and accepted all the C forms produced before them. This in fact amounts to condonation of delay by the Tribunal in the production of C forms without which the same could not have been ordered to be accepted. In any case the Tribunal has no powers to grant further time for the petitioner to try for C forms for the balance turnover. So much so the Tribunal did not grant time requested for by the petitioner. Strangely even after five months of the Tribunal s order the petitioner could not obtain the C forms because even in the revised assessment passed pursuant to the Tribunal s order the petitioner could not produce the same. The revisional powers of the High Court does not extend beyond what the Tribunal could do while disposing of the appeal. So much so in our view the High Court cannot in exercise of revisional powers grant indefinite time to obtain and produce C forms - Decided against assessee.

Summary

Issues:
- Justification of declining opportunity to obtain and produce C forms by the Tribunal
- Tribunal's power to grant further time to obtain and produce C forms
- Revisional powers of the High Court regarding C forms production

Analysis:
The judgment by the Kerala High Court dealt with the issue of declining the opportunity to obtain and produce C forms by the Tribunal. The petitioner, a public sector undertaking engaged in refining crude oil and sale of petroleum products, was involved in a CST assessment for 2001-02. Due to the non-production of C forms, a portion of the inter-State sales turnover was assessed at a higher rate. Despite efforts, the C forms were not available during the initial stages, leading to confirmation of the assessment at a higher rate. However, during the second appellate stage, the petitioner managed to produce C forms worth Rs. 2.46 crores. The Tribunal, in a lenient view, allowed the petitioner's claim and directed the assessing officer to grant the concessional rate for the valid C forms produced later. Subsequently, the assessing officer issued a revised order granting the concessional rate for the C forms produced as per the Tribunal's directions.

Regarding the power of the Tribunal to grant further time for obtaining and producing C forms, the High Court opined that the Tribunal does not possess the authority to provide indefinite time for such purposes. The Court emphasized that C forms should have been presented during the assessment stage itself, and any belated submission requires a valid explanation from the assessee. While acknowledging the Tribunal's leniency in accepting all C forms produced before them, the Court highlighted that this action amounted to condonation of delay, which the Tribunal is not empowered to do without proper justification. The High Court clarified that its revisional powers do not extend beyond the Tribunal's scope of action, and it cannot grant unlimited time for obtaining C forms. Consequently, the Court dismissed the revision case, affirming the Tribunal's order and rejecting the petitioner's request for additional time to procure C forms for the remaining turnover.

In conclusion, the Kerala High Court's judgment upheld the Tribunal's decision regarding the acceptance of C forms and emphasized the importance of timely submission during assessments. The Court clarified the limitations of the Tribunal's powers in granting extensions for obtaining C forms and reiterated that the High Court's revisional authority does not encompass providing indefinite time for such purposes. By dismissing the revision case, the Court maintained the Tribunal's ruling and established the boundaries within which such matters should be handled.