TMI Blog1992 (2) TMI 356X X X X Extracts X X X X X X X X Extracts X X X X ..... r has to pay enhanced rate, of tax at 10 per cent. The "C" form certificates are usually issued by the respondents in book form, each book having not less than 25 blank certificates. These certificates are filled up with the value of purchases from outside Kerala and forwarded to the seller there and he despatches such goods supported by "C" form certificate. Petitioner was obtaining the goods on "C" form for the past several years, i.e., from 1976 onwards. 2.. It is the contention of the petitioners, by Notification G.O. (P) No. 41/88/TD dated 30th March, 1988, issued by the Kerala Government under section 10 of the Kerala General Sales Tax Act which came into force on 1st day of April, 1988, as S.R.O. No. 364/88 complete exemption in respect of tax payable under the Kerala General Sales Tax Act is granted in favour of the printing presses. Therefore, petitioner need not pay sales tax under the State Act. 3.. After this notification, when the petitioner requested for "C " form on 26th April, 1991, and repeated the demand on 6th August, 1991 by exhibit P2, petitioner was not given "C" form. Hence petitioner approached this Court for a writ of mandamus to be issued to the respon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tificate. If the registering authority has power to verify the use or misuse of the form already issued, he has the duty to verify whether or not the forms are misused once they are issued, is the submission. Since it is found that the petitioner's business is only a works contract, it is the respondents' case that the petitioner is not entitled for "C" form and accordingly "C" form has been denied to the petitioner. 6.. A reply affidavit is also filed, in which it is stated that the goods, enumerated in the application for registration and the certificate of registration mentioned, have been used only for the purpose covered by the Rules. Goods are not sold as such without subjecting them to manufacturing or processing as cartons. It is stated that the petitioner has standing customers like Fertilisers and Chemicals of Travancore Limited, Kerala Drugs and Pharmaceuticals, Kerala Soaps and Oils, Federal Bank, Travancore Chemicals and Manufacturing Company, Keltron, etc. These firms in the course of business used cartons, labels, folders, posters, booklets, which are requisitioned from time to time and such printed materials are supplied by the petitioner. It is also stated that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y to whom an application is made is satisfied that the application is in conformity with the provisions of the Act and Rules made thereunder shall register the applicant and grant him certificate of registration in the prescribed form. The provision for investigating and granting certificate has been mentioned in the Central Rules, namely, the Central Sales Tax (Registration and Turnover) Rules, 1957. Application for registration shall be made by the dealer to the notified authority in form A. When the notified authority is satisfied after making necessary enquiry, that the particulars contained in the application is correct and complete and that prescribed fee has been paid it shall register the dealer and grant him certificate of registration in form B. If the authority is not satisfied naturally the application will be rejected after giving an opportunity to the dealer to be heard and if need be correcting or completing the particulars. The petitioner has produced form B registration certificate along with a statement. On a reading of the registration certificate it will be seen that it authorises the petitioner to purchase the paper, paper boards, aluminium plates, zinc and c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rms and Rs. 80 per book of 100 forms for furnishing it to the selling dealer. This rule is made by the State Government prescribing the authority to whom and the manner in which the form should be obtained. Sub-rule (12) requires the dealer to submit to the assessing authority a true copy of the register in form VI maintained by him so as to reach the assessing authority on or before 30th April of the succeeding financial year. This is preferably for the purpose of penalising the dealer if form has been wrongly used. On a reading of the provisions of the Act and the Rules, it will be seen that once the registered dealer obtains certificate authorising him to purchase the goods mentioned therein, he is entitled to get C form from the officer authorised under the Act to issue. When registration certificate is shown, he has to issue C form and the assessing officer has no discretion in this regard. If it is found that he has misused the form, there are provisions in the Act and the Rules to penalise the registered dealer. The Central Rules also give the power to the notified authority to cancel or amend the certificate. Section 7(4) gives power to the registering authority to amend or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the forms on the ground that the goods that are purchased using C form may be utilised in works contract. The court, it would appear, took the view that the notified authority cannot even defer the issue for making a thorough investigation of the nature of the business of the registered dealer. 11.. In Bengal Potteries Ltd. v. Commercial Tax Officer 1976 Tax LR 1574 the question was whether denial of C forms to a registered dealer on the ground that he is a defaulter in furnishing returns regularly was justified. The court held that section 8(4) of the Central Sales Tax Act gave dealers the right to obtain C form and that right cannot be taken away without authority of law. In fact in Dawar Brothers v. State of Madhya Pradesh [1979] 44 STC 286 (MP), the State rule empowering the Sales Tax Officer to withhold the issuance of blank C forms on the ground that he is in arrears of tax or a defaulter in furnishing return has been held ultra vires. 12.. In Unitech Ltd v. Commercial Tax Officer [1991] 83 STC 207 (AP) the question was whether the correct or incorrect use of the form can be gone into at the time of supply of forms. The petitioner in that case was a registered dealer. But ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g and deleting the goods used in tyre retreading. In Unitech Ltd. v. Commercial Tax Officer [1991] 83 STC 207 (AP), [1991] 80 STC FRSC 3, Sl. No. 11 (Commercial Tax Officer v. MacCharles Bros. P. Ltd.), and Studio Sen Sen v. State of Tripura [1990] 79 STC 168 (Gauhati) it was held that the officer had to give C form as and when it was asked for. The nature of works contract has been detailed in several decisions. The counsel for the respondents referred to the decisions reported in Pioneer Enterprise v. State of Tripura [1991] 80 STC 125 (Gauhati), S.R.P. Works and Ruby Press v. State of Andhra Pradesh [1972] 30 STC 195 (AP), P.T. Varghese v. State of Kerala [1976] 37 STC 171 (Ker), T.V. Sundram Iyengar Sons v. State of Madras [1975] 35 STC 24 (SC), Builders Association of India v. Union of India [1989] 73 STC 370 (SC), State of Madras v. Radio and Electricals Ltd. [1966] 18 STC 222 (SC); AIR 1967 SC 234, State of Madras v. Nand Lal and Co. [1967] 20 STC 374 (SC); AIR 1967 SC 1758, Consolidated Coffee Ltd. v. Coffee Board [1980] 46 STC 164 (SC); AIR 1980 SC 1468 and Khemka Co. (Agencies) Private Ltd. v. State of Maharashtra [1975] 35 STC 571 (SC); AIR 1975 SC 1549. These are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . He also referred to the unreported decision in T.R.C. No. 8182 of 1984 of one of the petitioners, in which it is held that the petitioner is carrying on works contract. 16.. If the petitioner has proper registration certificate and he is authorised to purchase materials against C form, the authority has adequate power to penalise him if the petitioner misused C form. In the decision reported in Studio Sen Sen v. State of Tripura [1990] 79 STC 168 (Gauhati) it was so held. If the goods purchased on the strength of C form issued under the Central Sales Tax (Registration and Turnover) Rules were not used for the purpose for which they were purchased, the authorities can take such action against the dealer for misuse of C form as may be permissible under the Act, such as under section 10(b) of the Central Sales Tax Act, 1956. 17.. In Varghese v. State of Kerala [1976] 37 STC 171 (Ker), the question was that the assessee conducting a press and printing bill books, vouchers, receipt books, letter heads, etc., as ordered by his clients is selling any paper used for printing so as to attract the sale contract. If it was a contract for sale of paper and for work, it would be a compo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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