TMI Blog1982 (8) TMI 208X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany requested the respondent to send C forms, envisaged by section 8 of the Central Sales Tax Act, 1956 (hereinafter called the Act), read with rule 12 of the Central Sales Tax (Registration and Turnover) Rules, 1957 (hereinafter referred to as the Rules). The Food Corporation of India, however, by its letter dated 19th September, 1980, refused to issue C forms on the ground that the rate quoted by the petitioner-company is inclusive of sales tax. The petitioner made further requests; but the respondent (Food Corporation of India) repeatedly rejected its request and finally on 19th February, 1981. A legal notice issued by the petitioner-company on 3rd March, 1982, calling upon the respondent-Corporation to issue C forms, did not bear any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces sent to New Delhi, as required under the agreement. There can be no doubt that the turnover covered by this transaction is an inter-State sale. The Food Corporation of India is also a registered dealer under the Central Sales Tax Act and all its Regional Offices under the Andhra Pradesh General Sales Tax Act. The sale is thus by a registered dealer in favour of a registered dealer. Under section 8(1) of the Central Sales Tax Act, every dealer, who in the course of inter-State trade or commerce sells to a registered dealer other than the Government, goods of the description referred to in sub-section (3), shall be liable to pay tax under this Act, which shall be four per cent of his turnover. There is no dispute that the goods in que ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the goods under the Andhra Pradesh General Sales Tax Act. Since there is no statutory obligation imposed upon the Corporation, it cannot be compelled to issue C forms. We are unable to agree with this contention. Section 8 of the Central Sales Tax Act makes it abundantly clear that if, in the course of inter-State trade or commerce, any sale is effected by a registered dealer, of the goods described in sub-section (3), the tax shall be only 4 per cent of the turnover. Inter-State sales attract only 4 per cent of tax, whereas intra-State sale attracts 10 per cent. In order to avoid controversy, the legislature intended the seller and the purchaser to furnish a declaration, and made a provision in sub-section (4) of section 8 requiring the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a or manager of a Hindu undivided family, any other person authorised by him in writing may also sign such declaration or certificate: Provided further that in the case of a company, such declaration or certificate can also be signed by any other officer of the company authorised under the Memorandum or Articles of Association of the company or under any other special or general resolution of the company or under a resolution passed by the Board of Directors of the company, to authenticate any document on behalf of such company. (b) Such person shall signify on such declaration or certificate his status and shall make a verification in the manner provided in such declaration or certificate. (9) and (10).................................. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essional rate of tax and prescribes the mode by which he can claim this concessional rate, it could not have been the intention of the legislature to defeat this provision at the sweet will and pleasure of the purchaser of the goods. Form C can be signed only by the purchaser of the goods and it is only by filing such forms, the registered dealer can take advantage of the provisions contained in section 8 of the Act; and that right cannot be defeated by the volition of another registered dealer who is the purchaser. It cannot be the intention of the legislature to deny this benefit upon the refusal of the purchaser to issue C forms and it is made clear by providing under sub-rule (3) of rule 12 that in case the original forms issued by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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