Claims of worth ₹15 Crore Under CST Act: Gujarat HC Allows Pfizer’s Additional claim in 11 year Tax dispute [Read Order]
The court noted that the prolonged litigation since the assessment year 2012-13 warranted a fair opportunity for the company to prove its claims
The Gujarat High Court has provided partial relief to Pfizer Limited in an 11-year tax dispute, permitting the company to submit additional Form F documents worth Rs. 15.08 crore for verification under the Central Sales Tax Act(CST).
The division bench of Justice A.S. Supehia and Justice Pranav Trivedi was hearing a petition challenging orders from the Gujarat Value Added Tax Tribunal that had restricted the verification of Form F documents, which are crucial for claiming tax exemptions on inter-state branch transfers.
The petitioner has prayed to quash and set aside the order dated 19.10.2023 as well as order dated 27.08.2024 passed by the Gujarat Value Added Tax Tribunal, Ahmedabad (“the Tribunal”) under the provisions of the Gujarat Value Added Tax Act, 2003 (“GVAT Act”) and to give direction to the respondent no. 3 authorities (“respondent”) to consider the validity of Form F.
Being aggrieved by the order passed by the First Appellate Authority, the petitioner preferred second appeal before the Tribunal. The second appeal came to be numbered as Second Appeal No. 178 of 2023. The Tribunal allowed the claim of the petitioner and remanded the matter back for verification of Form F to the tune of Rs.1.61 crores.
By way of order, the Tribunal allowed the claim of the petitioner and remanded the matter for verification of Form F to the tune of Rs.1,61,10,688/-. During the course of remand proceedings, the petitioner was further able to secure additional Form F to the tune of Rs.10.35 crores. However, the Tribunal did not consider the prayer made by the petitioner for consideration of further Form F.
The petitioner therefore preferred Misc Application before the Tribunal which came to be numbered as Misc. Application No. 22 of 2024. By way of order dated 22.08.2024, the Tribunal disallowed the Misc. Application as not maintainable.
The petitioner submitted that Form F is crucial for claiming exemption benefits. The admissibility of this form merely serves to validate the occurrence of the stock transfer. The delay in obtaining Form F from the respective State Tax Officer does not negate the fact the stock transfer had taken place.
It was further submitted that the impugned order dated 19.10.2023 expressly barred the consideration of any additional Form F. It was further directed to consider only those Form F that were submitted before the Tribunal. This unwarranted restriction has deprived the petitioner of its right to have the benefit of non-taxable stock transfer.
It is settled law that the assessee is eligible under reduction rate tax under the Central Sales Tax Act, 1956 on production of Form ‘C’ for inter state sale and Nil rate of tax on production of Form ‘F’ for branch transfer. The authority has not disputed the fact that the transaction was a branch transfer and Form ‘F’ was duly certified and issued by the authority.
The court noted that the prolonged litigation since the assessment year 2012-13 warranted a fair opportunity for the company to prove its claims. While the tax authorities had verified most forms, they could not verify those related to Rajasthan.
Pfizer agreed not to pursue any further claims beyond the documents already submitted. Consequently, the High Court directed the tax department to verify the additional forms and ascertain the remaining tax liability, which Pfizer would be required to pay within twelve weeksSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
