2026-VIL-1214-GUJ
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VAT High Court Cases

Central Sales Tax, 1956 - Concessional rate of tax under Section 8 of the CST Act on inter-State sales against Form C where original Form C is not produced and the procedure under Rule 12(2) and 12(3) of the Central Sales Tax (Registration and Turnover) Rules, 1957 is not followed - Appellant, whose head office had submitted the original Form C before the sales tax authorities of another State, could not produce the original Forms C before the Assessing Officer for part of the inter-State sales - Assessing Officer levied tax at the higher rate with penalty on such sales, the FAA accepted the forms verified online but rejected the mere photocopies - Appellant contended that certified photocopies should be accepted since the genuine forms were available with the sales tax authorities of the other State and there was no intention of tax evasion - Whether the benefit of concessional rate of tax can be extended on the basis of photocopies of Form C when the original Forms C were not produced before the Assessing Officer - HELD - It is not in dispute that the Appellant had not followed the procedure prescribed under Rule 12(2) and 12(3). Where a Form C is lost or incapable of being produced before the Assessing Officer, the procedure of furnishing an indemnity bond or obtaining a duplicate form with the prescribed declaration has to be followed - The Hon'ble Supreme Court has held that the Rules are intended to prevent misuse of Forms C and are mandatory and not a mere formality or technicality - A dealer making no attempt to comply with them even after rejection of the claim is disentitled to the concessional rate under Section 8 irrespective of the genuineness of the transactions. Since Section 8 read with Rule 12 requires strict compliance and the Appellant failed to follow the prescribed procedure, the concessional rate was rightly denied by the Tribunal in upholding the order of the FAA - The appeal is dismissed
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