Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2015 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (12) TMI 1135 - HC - VAT and Sales TaxMisuse of C-Forms / D-Forms - disputed turnover relating to the manufacture and supply of missiles is sale or job work - majority of the bulk of material was purchased by the respondent by issuance of C-Forms and D-Forms and which material was got incorporated in the final product which were sold to Government of India and also the foreign buyer. Held that:- Applying the ratio laid down by this Court in Bharat Dynamics Limited (1 supra) and in the absence of any material to come to a different conclusion, respectfully agreeing with the ratio laid down by earlier judgment, question No.1 is required to be answered in favour of the Assessee and against the Department. So far as question No.2 is concerned, the Tribunal had found that ERDL, Pune is not one of the entity listed in G.O.Ms.No.882 dated 28.12.1988, which fact is not being disputed before us. It is only those specific entities which are listed in G.O.Ms.No.882 dated 28.12.1988 that are prohibited to issue D- Forms. We may also further add that the fact that ERDL, Pune, had issued D-Form for procuring material would go to show that they are eligible and entitled to issue such D-Forms and the D-Forms are validly issued. In that view of the matter, allowing the respondent to avail the concessional rate of duty, as applicable to the transaction, is unassailable. We are also not persuaded by the argument of the learned counsel for the Department that on account of the alleged misuse of C-Forms, we have to assume that there is a sale transaction involved. Even assuming for the sake of argument that if there is mis-utilisation of C-Forms or any of the Forms which are issued under the Act, at best, a dealer may invite penalties or punitive measures. This aspect of the matter is settled by the judgment of the Hon’ble Supreme Court in Commissioner of Sales Tax v. Leather Facts Co. [1987 (3) TMI 481 - SUPREME COURT OF INDIA]. Hence, we find no reason to interfere with the orders of the Tribunal. - Decided against Revenue.
|