Non-Filing of C Form Declarations or Defects in it would not Attract Penalty under CST Act: Madras HC [Read Order]

The Madras High Court, in a recent ruling, held that non-filing of Form C declaration or certain defects in Form C declaration cannot be ground for levying penalty under section 9(2A) of the Central Sales Tax Act, 1956, though the same can be a reason for revising the original assessment.

In the instant case, the assessing officer found that the assessee had not submitted C Form declarations and found some defects in the Forms filed before him. Consequently, he revised the assessment and imposed penalty under section 9(2A) of the Central Sales Tax Act, 1956. In the notice, there was no proposal to levy penalty. However, while completing the revised assessment, penalty has been imposed in the order.

Allowing the writ petition, Justice T S Sivagnanam ruled that “It is only with regard to non-filing of Form C declaration or certain defects in Form C declaration. Thus, it is not a case where any penalty can be levied more so when there was no proposal in the revision notice dated 28.05.2007.”