1985 (1) TMI 299 - HC - VAT and Sales Tax

Summary

Issues: Withholding of ST-1 forms by the first respondent to the petitioner, interpretation of rule 8 of the Delhi Sales Tax Rules, power of assessing authority to withhold forms, requirements under clause (c) of sub-rule (4) of rule 8, completion of enquiry and issuance of ST-1 forms.

Analysis:
The High Court of Delhi, comprising of Justices Dalip K. Kapur and Sunanda Bhandare, heard a writ petition after a notice to show cause was issued. The main issue revolved around the first respondent withholding the grant of ST-1 forms to the petitioner, a registered dealer. The Court examined rule 8 of the Delhi Sales Tax Rules, specifically focusing on clause (c) of sub-rule (4), which outlines the circumstances under which the assessing authority can withhold the issuance of ST-1 forms. This clause requires a default in furnishing returns and other documents, along with adverse material suggesting concealment of sale or inaccurate particulars.

In the present case, the forms were refused on the basis of a pending enquiry. However, the Court noted that no conclusion had been reached in the enquiry, and the assessment of the assessee had not taken place. As a result, the Court found that there was no evidence of any loss in revenue or any actions by the petitioner justifying the withholding of the ST-1 forms. Therefore, the Court allowed the petition and directed the respondent to issue the ST-1 forms in accordance with the procedure outlined in sub-rule (4) of rule 8.

It was clarified that this decision did not prevent the Sales Tax Officer or other assessing authority from taking any further actions in accordance with sub-rule (4) of rule 8. The judgment emphasized the importance of following the prescribed procedures and requirements before withholding the issuance of ST-1 forms, highlighting the need for a written order and specific conditions to be met before such action can be taken.