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2018 (1) TMI 553 - ALLAHABAD HIGH COURTConcessional rate of tax - sale or purchase of goods in inter-state trade or commerce - certificate of registration granted in Form 'B' - CST Act, 1956 - A declaration is sought in the writ petition that UPPTCL is entitled to be issued Form 'C' for the financial year 2010-11 to 2016-17, for the purchases to be effected for the contract work specified in Form 'B' at Unnao and Sirathu - An alternative prayer is also made to direct the UPPTCL to pay differential amount of tax, together with interest, in case it is found not entitled to Form 'C'. Held that: - Admittedly, UPPTCL is the registered dealer to whom a certificate has been issued by the competent authority in Form 'B'. Such inter-state sales attract concessional rate of tax as per the description given in the Form. It is an admitted position that registration certificate issued to UPPTCL in Form 'B' subsists and has not been amended or cancelled, in terms of sub-section (4) of section 7 of the Act. In such eventuality, the registered dealer (UPPTCL) is required to provide declaration, dully filled and signed by it to the selling dealer (writ petitioner) containing the prescribed particulars in prescribed form. Such declaration and certificate has to be made in form 'C' appended to the Rules of 1957. In its absence, normal rate of tax would have to be paid by the selling dealer. This would be impermissible once the inter-state sale is covered by sub-section (1) and (3) of section 8 and a certificate is already issued under Form 'B'. Once a certificate has been issued by the competent authority, it was impermissible for the authorities to withhold issuance of certificate in Form 'C'. Denial of Form 'C' to the UPPTCL despite the certificate issued in Form 'B' was wholly unwarranted and illegal yet, it would be appropriate to examine the matter from another aspect before concluding the discussions. The Commercial Tax Authorities have been of the opinion that 'power transmission' is not covered within the express terms of section 8(3)(b) of the Act of 1956. For arriving at such an opinion the provision itself has been taken note of and construed as being limited to 'generation or distribution of electricity' alone. While taking such view the authorities have not examined the expression occurring in the statute itself. The tribunal has committed manifest error of law in upholding denial of Form 'C' to the revisionist, notwithstanding the fact that registration certificate issued in Form 'B' specifies levy of tax at concessional rate in respect of inter-state sale made for power transmission - A direction is also issued to the concerned authorities of the Department of Commercial Tax to issue Form 'C' to the revisionist in respect of items included in Form 'B', which are liable to be taxed under section 8(1) of the Act of 1956. Petition allowed - decided in favor of assessee.
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