The Bombay High Court held that the refund of sales tax can’t be rejected merely on non-covering of C form under the assessment and upheld the order accepting C forms during the Appellate stage.
Mr Himanshu B. Takke, appeared for the Appellant-State and Mr Ratan Samalo appeared for the Respondent
State of Maharashtra challenging the judgment and order dated 15th January 2020 passed by the Maharashtra Sales Tax Tribunal in VAT Second Appeal No.101 of 2014 under Section 27 of the Maharashtra Value Added Tax Act, 2002
The Deputy Commissioner of Sales Tax assessed the Respondent-Dealer for the period from 1st April 2005 to 31st March 2006 under the Central Sales Tax Act, 1956 raising a total demand of Rs.6,11,828/- with a notice in Form 603 under Section 64 of the MVAT Act, 2002.
The Deputy Commissioner, therefore, passed the Assessment Order dated 29th June 2013 for the Assessment Year 2013-14 under Section 23(5) of the MVAT Act, 2002 to the best of his judgment based on available records.
The Respondent-Dealer, M/s. M.M. Sales Corporation filed an Appeal to set aside the Assessment Order stating that the same was ex-parte and also to accept the ‘C’ forms received from M/s. Varsha Controls Gear for the corresponding sales worth Rs.11,40,355/- and ‘C’ forms received from M/s. Dynacraft Air Controls for the corresponding sales worth Rs.33,02,712/-.
The Appellate Authority partly allowed the Appeal of the Respondent-Dealer and rejected the ‘C’ forms issued by M/s. Varsha Controls Gear on the ground that those transactions were not covered under the Assessment Order passed under Section 23(5) of the MVAT Act, 2002.
On Appeal before the Maharashtra Sales Tax Tribunal, the Appeal of the Respondent-Dealer was allowed and remanded the matter back to the Appellate Authority for giving a decision on merits after taking into consideration the legal aspects.
The Sales Tax Tribunal held that the Appellate Authority was therefore not justified in rejecting the Appellant’s claim in respect of the ‘C’ forms issued by M/s. Varsha Controls Gear merely on the ground of not being covered under the Assessment Order passed under Section 23(5) of the MVAT Act, 2002.
It was observed that the Appellate Authority as well as the Appellate Tribunal have powers of the widest amplitude.
The bench consists of Justice Dhiraj Singh Thakur and Justice Abhay Ahuja, who observed that the Appellate Authority has the power to consider a claim made by an assessee which was not before the assessing officer has held the Tribunal discretion as correct. The appeal filed by the department was dismissed.The Bombay High Court held that the refund of sales tax can’t be rejected merely on non-covering of C form under the assessment and upheld the order accepting C forms during the Appellate stage.
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