TMI Blog2015 (7) TMI 309X X X X Extracts X X X X X X X X Extracts X X X X ..... duced belatedly i.e. subsequent to the completion of the assessment by reopening the assessment. Further, Rule 12(7) of the CST Rules also provide for the same. The statutory forms can also be filed before the First Appellate Authority. - First Appellate Authority without going into the merits of the case dismissed the appeal on the ground that it is barred by limitation - Matter remanded back - Decided in favour of assessee. - W.P. No.72328 & W.P.Nos.72395-397/2012 (T-RES) - - - Dated:- 5-6-2015 - B. Manohar, J. For the Appellant : Sri. T Suryanarayana, Adv For the Respondent : Sri. M Kumar, AGA ORDER Petitioner in these writ petitions has sought for quashing the assessment order dated 25-05-2011 and also subsequent demand notices as per Annexures-F1 to F4 and also order dated 18-10-2012 passed by the Joint Commissioner of Commercial Taxes (Appeals) rejecting the appeals filed by the petitioner and also notice dated 11-10-2012 issued by the 3rd respondent under Section 14 of the Karnataka Sales Tax Act (hereinafter referred to as the KST Act for short) and for other reliefs. 2. The petitioner is a unit of Weir India Private Limited which is a subsidia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e tax of ₹ 2,04,22,286/-. Further, the demand notices were also issued as per Annexures-F1 to F4. Immediately on receipt of the said demand notices, the petitioner addressed a letter dated 01-06-2011 to rectify the mistakes in the assessment order on 25-05-2011 invoking Section 69 of the KVAT Act. In the said letter, the petitioner has contended that, they are claiming refund of ₹ 3,56,15,297/-, hence the question of demanding tax from the petitioner does not arise. The Inter-State transaction is covered by the statutory forms i.e. C Forms and H Forms and the petitioner is entitled for concessional rate of tax. Thereafter, on 23-06-2011, one more letter was addressed to the Assessing Authority producing 38 C Forms, covering a turnover for the assessment year 2008-09 and also H Forms covering turnover of ₹ 1,92,020/-. In pursuance of the said letter, the Assessing Authority issued an endorsement dated 03-07-2011 calling upon the petitioner to appear before the Assessing Authority within 7 days from the date of receipt of the notice with supporting documents. The said notice was received by the assessee on 19-07-2011. Since the petitioner failed to appear be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct read with Section 39 of the KVAT Act. In the Circular, it was made clear that the Circular Instruction dated 07-06-2006 shall be adhered to, strictly by all officers. In the instant case, though C Forms and H Forms are produced subsequent to the assessment, as per the Circular dated 7-6-2006, duty casts upon the Assessing Authority to take into consideration the statutory forms filed subsequent to the completion of assessment by reopening the assessment under Section 9(2) of the CST Act read with Section 39 of the KVAT Act. The Assessing Authority acted contrary to the circular dated 7-6-2006 issued by the Commissioner. Further, as per Rule 12(7) of Central Sales Tax (Registration and Turnover) Rules, 1957 the assessing officer may on the application made to him, extend the time to file statutory forms. If the Prescribed authority is satisfied that the person concerned was prevented by sufficient cause from furnishing such statutory forms within the aforesaid time, the authority may allow furnishing the said Forms within such further time. In the instant case, though the petitioner has sought time to collect the statutory forms from their customers, the Assessing Authority h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etitioner to produce the statutory C Forms and H Forms, the petitioner has failed to produce the same. Further in the absence of statutory forms, the provisional assessment order has been passed calling upon the petitioner to file objections to the said proposition notice. The petitioner has failed to file objections to the said proposition notice nor produced any C Forms, accordingly, the Assessing Authority passed the order. Even in rectification proceedings also, though the petitioner was called upon to produce C Forms and H Forms, the petitioner has failed to produce the same. Accordingly, the Assessing Authority rejected the rectification application. 7. The Circular dated 7-6-2006 makes it clear that If the required statutory forms are not filed or not fully filed within 3 months from the end of the quarter to which such returns relates or till further extended time, if any, then the assessing authorities shall proceed to assess the dealer rejecting the claim of concessional rate of tax/exemption, after issuing proposition notice and after providing reasonable opportunity of being heard to the dealer in this regard, without, however, calling for books of accounts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rievance of the petitioner is that within four months of acquisition of business of the BDK Engineering, the assessment proceedings was taken place. He has to get the C Forms and H Forms from their customers, which consumes some more time. In spite of the request made by the petitioner for extension of time, the Assessing Authority has not considered the same. Hence, he relied upon the Circular No.9/2006-07 dated 7-6-2006 issued by the Commissioner for Commercial Taxes, wherein the clause (e) and (f) read thus: (e) If the required statutory forms are not filed or not fully filed within 3 months from the end of the quarter to which such returns relate or till further extended time, if any, then the assessing authorities shall proceed to assess the dealer rejecting the claim of concessional rate of tax/exemption, after issuing the proposition notice and after providing reasonable opportunity of being heard to the dealer in this regard, without, however, calling for books of accounts. (f) If the statutory forms are filed subsequent to completion of assessment as per sub-para (e) above, then the assessing authorities should consider the same by re-opening the assessments U/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tisfied that assessee was prevented by reasonable and sufficient cause which disenabled him to file the forms in time, it can be accepted. It can also be accepted as additional evidence in support of the claim for deduction. 10. The judgment relied upon by the petitioner fully supports the case of the petitioner. The assessment for the year 2008-09 was taken up by the Assessing Authority after issuing notice. At the relevant point of time, the petitioner could not collect the entire statutory C Forms and H Forms and requested some more time to produce the same. However, the Assessing Authority proceeded to issue pre-assessment notice and thereafter passed the assessment order. In the returns itself, the petitioner had claimed refund of a sum of ₹ 3,56,15,297/-. The opportunity ought to have been given to the petitioner to produce the C Forms and H Forms. The benefit available under the law cannot be denied on technical ground. The transaction is inter-state transaction. On production of statutory forms issued by the competent authorities, the petitioner is entitled to pay the lesser tax. In the instant case, for non-production of statutory forms, the Assessing Aut ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
