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Tata International Ltd Versus State of Bihar Through Commissioner of Commercial Taxes And Others

2015 (4) TMI 776 - PATNA HIGH COURT

Rejection of application for issuance of Form-C filed electronically - Held that:- The issuance of Form-C and Form-F is required under the provisions of the Central Sales Tax Act so that the dealer may be entitled to the benefit of the lower rate of tax with respect to sales made in the course of inter-State trade or commerce with regard to goods, which have been declared to be of special importance in the inter-State trade or commerce under the provisions of the Central Sales Tax Act. Under Sec .....

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itioner. So far as the assessments made after the date of the application and the recovery of tax thereon are concerned, the same stand on entirely different footings and they cannot be used for the purpose of denying of issuance of Form-C and Form-F, as efficacious mode of recovery of tax is available to the respondent authorities under the provisions of the Central Sales Tax Act read with Bihar Value Added Act and Rules. - Impugned order is set aside - Decided in favour of assessee. - Civil Wr .....

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issuance of Form-C filed electronically by the petitioner has been rejected and for the consequential direction to respondent No.2 to issue Form-C as also Form-F. The petitioner is a dealer registered under the Bihar Value Added Tax Act, 2005 for the purpose of conduct of its business for purchasing raw skin from the dealers both registered and unregistered and after treating the same, the goods are transferred to its works at Dewas in the State of Madhya Pradesh. The said goods in terms of the .....

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aler from whom the purchases have been made or by the petitioner itself where purchases have been made from unregistered dealers. However, in the returns being filed during the past years, it is admitted that for the period from 2006-07 to 2012-13 certain mistakes had cropped up in the returns in so far as filling up of the different columns was concerned which, however, did not lead to any evasion of tax or any payment of less tax by the petitioner. Under the provisions of Section 25 of the Bih .....

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the application of the petitioner electronically made for supply of Form-C has been rejected. It is submitted by learned counsel for the petitioner that in terms of the provisions of Section 8 (4) of the Central Sales Tax Act, the authorities of the Sales Tax department are obliged to issue the Form-C and Form-F, which are required by the petitioner for the purpose of carrying on its business so that the proper amount of tax may be paid in view of the nature of the transaction and the nature of .....

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saction irrespective of any error in the returns filed. In support of the same, learned counsel for the petitioner relies upon a decision of the Division Bench of Mysore High Court at Bangalore in the case of Narsepalli Oil Mills vs. State of Mysore: (1973) 32 S.T.C. 559, in which it has been held as follows:- "The petitioner cannot ascribe any error in the order of the Commercial Tax Officer since his own return was accepted by the assessing authority and there was no dispute that the sale .....

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tax. There is no question of invoking the doctrine of estoppel. In our opinion, the Deputy Commissioner of Commercial Taxes as also the Tribunal have failed to exercise the jurisdiction vested in them." The stand of learned counsel for the State is that the petitioner has failed to pay the taxes in accordance with the returns filed which was discovered by the respondent authorities and thereafter the assessment orders have been passed for six years, i.e., from 2006-07 to 2012-13 and huge am .....

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dated 6.9.2012 with regard to issuance of Form-C and the notification dated 30.3.2013 with respect to the issuance of Form-F through electronic media. It is urged that under the said notifications, the concerned officer of the Department is required to click acknowledgment number which will show four questions as to whether the different conditions for issuance of Form-C have been complied with by the dealer or not. One of the conditions is that the dealer must have deposited at least 75% of the .....

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d by the Department that the petitioner has not paid the entire amount of tax and a huge amount of tax is payable by the petitioner. Learned counsel for the petitioner in reply to the same submits that the petitioner was only required to pay the tax as per the return submitted by him which was the law prior to the amendment of Rule 9 on 4.7.2012 and even after the said amendment as per the notifications dated 6.9.2012 and 3.3.2013, the same position shall prevail and the stand of the respondents .....

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ter. It is further submitted that the assessment having been made for the huge amount, cannot disentitle the petitioner to obtain Form-F, as the mode of recovery of tax have been provided in the Bihar Value Added Tax, 2005 itself and the issuance of Form-F could not be made an additional mode of recovery, as there is no such provision either in the Act or Rule in that regard. In support of the same, learned counsel for the petitioner relies upon a decision of the Karnataka High Court in the case .....

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ity despite which the petitioner has not remitted the amount of tax due from it. It is urged that default on the part of the petitioner in making the payment of amount of tax validly assessed against it disentitles it from claiming the issue of "C" forms from the respondents. I, however, find no substance in the defence set up by the respondent. The provisions of Section 8, sub-section (4) of the Central Sales Tax Act, 1956 read with rule 12 (1) of the Rules framed under the said Act e .....

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mpower the prescribed authority to withhold the issue of the requisite "C" forms only on the ground that the dealer who applies for the same is in arrears of tax. In the absence of any such power it is difficult to see how the prescribed authority can decline to issue the forms only because there is some default on the part of the dealer in making the payment of tax determined against it. That is especially so when the provisions of the Karnataka Entry Tax Act under which the amount of .....

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for quick and summary recovery of the amount from him. That being so, it is not permissible for the prescribed authority to withhold the "C" forms only on account of the default committed by the assessee in the payment of the tax determined against it. Any such stance taken by the prescribed authority would amount to prescribing an additional mode for recovery of the tax amount not otherwise recognized by section 8 (4) of the Entry Tax Act. If the Legislature really intended to provid .....

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nt. In the circumstances, therefore, I see no justification behind the sand taken by the respondent for refusing to issue of "C" forms to the petitioner. The writ petition accordingly succeeds and is hereby allowed. The respondents shall issue the requisite forms to the petitioner in terms of its application dated May 13, 1997 within one week from today. There shall however be no orders as to costs." We have considered the submissions of learned counsels for the parties. We find s .....

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) of the Central sales Tax Act as also Central Sales Tax (Bihar) Rules, the requirement was only to see that the dealer has filed all the returns and had paid the tax as admitted in the said returns filed. Even after the amendment in Rule 9 of the Central Sales Tax Rules which has conferred power upon the Commissioner of Commercial Taxes, there is nothing in the notifications dated 6.9.2012 and 30.3.2013 issued by the Commissioner which lays down anything to the contrary that any scrutiny is to .....

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