In a recent decision, the Calcutta High Court directed to accept C Forms thereby allowing Deduction on “second stage handling charges”.
The writ petition has been filed by the writ petitioner, Jagatdal Jute & Industries Ltd, under Article 226 of the Constitution of India challenging the impugned order passed by the Fast Track Revisional authority concerned under the West Bengal VAT Act, 2003 and under Section 9(2) of the Central Sales Tax Act, 1956 confirming the order of the adjudicating authority and appellate authority with certain modification.
The writ petitioner has made a prayer for relief by directing the adjudicating authority concerned to accept the ‘C’ Forms in question referred to in this writ petition which according to the petitioner, could not be produced before the authority concerned for the reason beyond its control and the same is now available with it.
The Petitioner is also aggrieved by the impugned orders of the authorities concerned disallowing its claim of deduction on account of “the second stage handling charges” in question.
The Counsel for the petitioner submitted that imposing a tax on “the second stage handling charges” in question is unreasonable for the reason that it has nothing to do with it and it was at the request of the customers which in the present case are various Government agencies and petitioner in support of such contention relied on several decisions.
The Court of Justice Md. Nizamuddin observed that “Writ petition being is disposed of by setting aside the aforesaid impugned order of the revisional authority and the order of the appellate authorities and so far issue of “second stage handling charges” is concerned the adjudicating authority concerned shall consider the same afresh by passing a reasoned and speaking order”.
The Court also directed the respondent authorities to consider and accept the ‘C’ Forms in question referred to in this writ petition subject to verification and genuineness of the transaction within four weeks from the date of communication of the order.
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