2025 (5) TMI 1814 - 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 inter-state trade and commerce - HELD THAT - Following the said 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 third quarter of 2013-14 by filing a revised return for the said period to enable issuance of the statutory 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. Following the said decision of the Co-ordinate Bench of this Court in GSP Power System Pvt. Ltd. in the facts of the present case the Petitioner is permitted to rectify its DVAT returns for the third quarter of 2013-14 by filing a revised return for the said period to enable issuance of the statutory F Forms to the Petitioner. Petition disposed off.

Summary

1. ISSUES PRESENTED and CONSIDERED

The core legal questions considered by the Court in this matter include:

• Whether the Respondent is obliged to issue statutory Form 'F' under the Central Sales Tax (Delhi) Rules in respect of inter-state trade and commerce transactions upon rectification of returns filed under the Delhi Value Added Tax (DVAT) Act.
• Whether the Petitioner has the right to revise previously filed DVAT returns to correct omissions related to inter-state branch transfers and thereby obtain the requisite statutory forms.
• The impact and binding nature of pending Supreme Court decisions on the issuance of Form 'F' and the revision of returns under the DVAT Act and Central Sales Tax (Delhi) Rules.
• The effect of interim orders and stays granted by the Supreme Court on the enforcement of the High Court's prior judgments concerning issuance of statutory forms and revision of returns.

2. ISSUE-WISE DETAILED ANALYSIS

Issue 1: Obligation to Issue Form 'F' for Inter-State Transfers

Relevant legal framework and precedents: The issuance of Form 'F' is governed by the Central Sales Tax (Delhi) Rules, which regulate inter-state trade and commerce. The DVAT Act and Rules provide mechanisms for filing returns and obtaining statutory forms necessary for compliance with tax obligations. The Court considered the decision in Ingram Micro India Pvt. Ltd. v. Commissioner, Department of Trade & Taxes, a precedent involving similar issues regarding issuance of Form 'F' and revision of returns.

Court's interpretation and reasoning: The Court acknowledged that statutory forms like Form 'F' are essential for inter-state transactions and that the Petitioner's entitlement to such forms arises upon proper compliance with filing requirements. The Court noted that the Petitioner had initially failed to mention details of inter-state branch transfers in the relevant returns, which led to the refusal to issue Form 'F'.

Key evidence and findings: The Petitioner sought to rectify the omission by filing revised returns for the relevant period. The Respondent's refusal to accept such revisions and issue Form 'F' was challenged as contrary to the provisions of the DVAT Act and Central Sales Tax Rules.

Application of law to facts: The Court, relying on prior decisions, held that the Petitioner is entitled to rectify its returns to enable issuance of Form 'F'. The legal framework permits revision of returns under the DVAT Act, and the refusal to allow such revision was deemed perverse in law.

Treatment of competing arguments: The Respondent argued that the matter was sub judice before the Supreme Court and that interim orders restrained the enforcement of the High Court's judgments. The Court accepted this but emphasized that the Petitioner's right to revise returns and obtain statutory forms exists subject to the final outcome of the Supreme Court appeals.

Conclusions: The Court directed the Respondent to allow the Petitioner to file revised returns for the relevant period and to issue the statutory Form 'F', subject to the condition that this direction remains suspended pending the Supreme Court's decision in related appeals.

Issue 2: Right to Revise DVAT Returns and Effect of Pending Supreme Court Appeals

Relevant legal framework and precedents: The DVAT Act and Rules provide for revision of returns, and the issuance of statutory forms is contingent upon accurate returns. The Court referred to multiple decisions, including GSP Power System Pvt. Ltd. v. Commissioner of Goods and Services Tax Department of Trade and Taxes, and others, which dealt with similar issues and were pending appeals before the Supreme Court.

Court's interpretation and reasoning: The Court recognized that the Petitioner's failure to disclose inter-state transfers in the original returns warranted revision. It also acknowledged that the Supreme Court had granted leave in appeals challenging the High Court's decisions on these matters, resulting in stays and suspension of enforcement of certain directions.

Key evidence and findings: The Court examined the procedural history, including the adjournment sine die of the present petition pending the Supreme Court's judgment in Ingram Micro India Pvt. Ltd. and related appeals. It noted that the Supreme Court's interim orders had effectively suspended the operation of earlier High Court directions on issuance of statutory forms and revision of returns.

Application of law to facts: While affirming the Petitioner's right to revise returns and obtain Form 'F', the Court balanced this against the principle of judicial comity and respect for the Supreme Court's pending adjudication. It thus conditioned its directions on the outcome of the Supreme Court appeals.

Treatment of competing arguments: The Respondent's reliance on the Supreme Court's interim orders was accepted as a valid reason to suspend the operative effect of the High Court's directions. The Petitioner's argument for immediate relief was accommodated by permitting revision but subject to suspension of the direction until the Supreme Court's ruling.

Conclusions: The Court disposed of the petition with directions allowing revision of returns and issuance of Form 'F', but explicitly suspended these directions pending final adjudication by the Supreme Court.

3. SIGNIFICANT HOLDINGS

The Court established the following core principles and determinations:

• "The Petitioner is permitted to rectify its DVAT returns for the relevant period by filing a revised return to enable issuance of the statutory 'F' Forms."
• "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."
• The Court recognized the binding nature of the Supreme Court's pending appeals and interim orders, stating that the directions issued by the High Court shall "abide by the decision that the Supreme Court renders."
• The Court emphasized judicial restraint by disposing of the petition with conditional directions rather than granting immediate unconditional relief, thereby preserving the status quo pending higher adjudication.

In sum, the Court balanced the Petitioner's statutory rights under the DVAT Act and Central Sales Tax Rules to revise returns and obtain Form 'F' with the procedural necessity of respecting the Supreme Court's pending decisions and interim orders. The judgment thus preserves the legal status quo while allowing procedural compliance subject to final judicial determination at the apex level.