2026-VIL-508-ORI
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VAT High Court Cases

Central Sales Tax Act, 1956 – Branch Transfer – Mandatory Production of Form F Declaration – Petitioner claimed inter-State transfer of goods to its branch located and produced consignment challans duly stamped at border checkgates, transfer invoices, transport receipts, way bills etc but failed to furnish the statutory declaration in Form F - Assessing authority levied tax treating the transaction as an inter-State sale due to non-production of Form F. The first appellate authority allows the claim for branch transfer relying on other documentary evidence. The Tribunal reversed the order, holding that production of Form F is mandatory to claim exemption under Section 6A of the Central Sales Tax Act - Whether the production of declaration in Form F as proof of inter-branch transfer is mandatory notwithstanding the precedent holding that branch transfer can be proved by alternative evidence – HELD - During the assessment year 1999-2000, the production of Form F declaration was not mandatory to claim exemption from payment of Central Sales Tax under Section 6A. The Section 6A provides an enabling provision offering one mode of discharge of the burden to prove that movement of goods was occasioned otherwise than by way of sale, but it does not estop the dealer from proving such claim through other relevant evidence including books of accounts, invoices, transport receipts, and border checkgate stamps. The deeming fiction introduced by the Finance Act, 2002 amending Section 6A applies prospectively and cannot be applied retrospectively to assessment year 1999-2000 - When the Appellate authority has meticulously examined documentary evidence and recorded findings that goods moved to the branch across State borders with taxes paid thereat, the Tribunal cannot reverse such findings without reference to the assessment records. The principle established in prior decisions clearly indicates that filing of Form F is an easier mode but not the only mode to discharge the burden of proving branch transfer. The Tribunal erred by placing the burden on the dealer to prove inter-State sale rather than examining whether the dealer had discharged the burden through alternative evidence - The order passed by the Tax Tribunal is set aside and the order passed by the first appellate authority is restored - The question of law is answered in favour of the dealer and against the Revenue
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GSTAT Appeal filed wrongly...
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