2025 (5) TMI 1989 - HC - VAT / Sales Tax

Seeking issuance of an appropriate writ directing the Respondent to issue Form F to the Petitioner in respect of the goods transferred under interstate trade and commerce under Section 6A of the Central Sales Tax Act 1956 - HELD THAT - Following the decision of the Co-ordinate Bench of this Court in GSP Power System Pvt. Ltd. 2020 (10) TMI 215 - DELHI HIGH COURT in the facts of the present case the Petitioner is permitted to rectify its DVAT returns for the period of 01st January 2013 to 31st March 2013 all four quarters of Assessment Year 2013-14 and for the period April 2014 to June 2014 in order to enable the issuance of the requisite F Forms to the Petitioner. These directions shall however remain suspended till the appeal in Ingram Micro India Pvt. Ltd. as also the M/s Commissioner VAT Delhi Ors. v. M/s Indian Oil Corporation Ltd. are pending before the Supreme Court and are decided. This direction shall abide by the decision of the Supreme Court in the said case. Petition disposed off.

Summary

The core legal questions considered in this judgment revolve around the entitlement of the petitioner to obtain Form 'F' under Section 6A of the Central Sales Tax Act, 1956, in respect of goods transferred under interstate trade and commerce, and the permissibility of rectifying returns filed under the Delhi Value Added Tax (DVAT) Act to enable issuance of such statutory forms. The issues also include the implications of pending appeals before the Supreme Court on similar matters, and the extent to which the High Court can grant relief pending final adjudication by the apex court.

Issue 1: Whether the petitioner is entitled to issuance of Form 'F' for interstate branch transfers under Section 6A of the Central Sales Tax Act, 1956, and whether the petitioner can amend or rectify returns filed under the DVAT Act to facilitate such issuance.

Issue 2: The effect of the pending Supreme Court appeals challenging the decisions of the High Court in similar matters, specifically the appeal in the Ingram Micro India Pvt. Ltd. case, on the relief sought by the petitioner.

Issue 3: The scope and impact of interim orders passed by the Supreme Court in related cases on the issuance of statutory forms and rectification of returns under the DVAT Act.

Issue-wise Detailed Analysis:

Issue 1: Entitlement to Form 'F' and Rectification of Returns

The relevant legal framework includes Section 6A of the Central Sales Tax Act, 1956, which governs the issuance of statutory forms such as Form 'F' to enable concessional tax treatment on interstate sales and transfers. The DVAT Act and the Central Sales Tax (Delhi) Rules provide the procedural mechanism for filing returns and obtaining these forms. Precedents from the Co-ordinate Bench of the Delhi High Court, including decisions in Ingram Micro India Pvt. Ltd. and GSP Power System Pvt. Ltd., have addressed the issue of issuance of Form 'F' and the permissibility of revising returns to correct omissions relating to interstate branch transfers.

The Court noted that the petitioner had failed to mention details of interstate branch transfers in the returns filed for the relevant periods and had requested permission to revise these returns to enable issuance of Form 'F'. The respondent authorities had rejected this request, leading to the present petition.

The Court relied on the decision in GSP Power System Pvt. Ltd., where it was held that refusal to allow revision of returns and issuance of Form 'F' was perverse in law and contrary to the provisions of the DVAT Act and Central Sales Tax Rules. The Court observed that the petitioner should be permitted to rectify its returns for the relevant periods to enable issuance of the requisite Form 'F'.

The Court's reasoning emphasized adherence to statutory provisions allowing correction of returns and issuance of statutory forms, recognizing the petitioner's entitlement to such relief subject to compliance with procedural requirements.

Issue 2: Effect of Pending Supreme Court Appeals

The Court acknowledged that the legal questions raised in the present petition and similar cases were sub judice before the Supreme Court, particularly the appeal in Commissioner Department of Trade and Taxes v. Ingram Micro India Pvt. Ltd. (Civil Appeal No. 4573/2017). The Supreme Court had granted leave to appeal and had stayed the operation of certain High Court orders on related issues.

The Court noted that several decisions of the Co-ordinate Bench, including those in Indian Oil Corporation Ltd. and others, were also under challenge before the Supreme Court, and interim orders had been passed suspending the operation of the High Court's directions.

In light of these developments, the Court recognized the need to harmonize its directions with the ongoing appellate proceedings and the interim orders of the Supreme Court. The Court therefore directed that while the petitioner be permitted to rectify its returns and obtain Form 'F', such directions shall remain suspended pending the final decision of the Supreme Court in the said appeals.

This approach balances the petitioner's statutory rights with the principle of judicial restraint pending authoritative pronouncement by the apex court, thereby preventing conflicting judicial outcomes.

Issue 3: Impact of Supreme Court Interim Orders on Issuance of Forms and Return Revision

The Court reviewed the effect of interim orders passed by the Supreme Court, which had stayed the operation of certain High Court judgments directing issuance of statutory forms and allowing rectification of returns. The Court observed that these interim orders had led to suspension of directions in several writ petitions, including those involving issuance of segregated and separate 'C' Forms and correction of returns.

The Court acknowledged submissions from the respondents emphasizing the binding nature of these interim orders and the necessity to comply with them. Consequently, the Court adopted a cautious stance, allowing rectification and issuance of Form 'F' only subject to suspension until the Supreme Court's final adjudication.

This demonstrated the Court's adherence to the hierarchical judicial structure and respect for the Supreme Court's supervisory jurisdiction over substantial questions of law concerning tax statutes and procedural compliance.

Significant Holdings:

"The petitioner is permitted to rectify its DVAT returns for the period of 01st January, 2013 to 31st March, 2013, all four quarters of Assessment Year 2013-14 and for the period April 2014 to June 2014 in order to enable the issuance of the requisite 'F' Forms to the Petitioner."

"These directions shall however remain suspended till the appeal in Ingram Micro India Pvt. Ltd. (Supra) as also the M/s Commissioner, VAT Delhi & Ors. v. M/s Indian Oil Corporation Ltd. [SLP(C) No. 13928/2017] are pending before the Supreme Court and are decided. This direction shall abide by the decision of the Supreme Court in the said case."

The Court established the principle that statutory forms under the Central Sales Tax Act and the DVAT Act are to be issued upon proper rectification of returns, and denial of such forms without permitting rectification is contrary to law. However, such relief is to be cautiously granted subject to the outcome of pending appeals before the Supreme Court, ensuring uniformity and finality in legal interpretation.

In conclusion, the Court disposed of the petition with directions permitting amendment of returns and issuance of Form 'F', but suspended the operation of such directions pending the Supreme Court's decision in the related appeals. This preserves the petitioner's rights while respecting the apex court's jurisdiction and pending adjudication on the substantive legal issues.