C forms not issued under cst
Ashutosh Choubey
(Querist) 30 May 2014
This query is : Resolved
Dear Sir,
The party has raised debit note upon us as we could not issue C Forms under our CST purchase. The reason for non issue of C Forms is that our local sales tax department is unable to provide forms due to shortage of forms in department. The C Forms are now issued online and physical forms are discontinued. The C forms for which debit note has been raised relates to 2012-13 when there was system of issuing physical forms and now it is discontinued. However we have applied for the forms and the department officials have assured us that they will arrange physical C forms for old period and provide it to us as soon as it will be printed and made available for clearing old period requirements.
Kindly suggest the step that we should take in our defense as per law or any court / tribunal decision in such matters.
R.V.RAO
(Expert) 01 June 2014
C form can be submitted to the assessing authority within three months after the end of period to which it relates. STO can allow further time for submission of the form, if there is sufficient cause for not submitting the form in time.
C form can be submitted even at appellate stage if sufficient cause shown: I have already earlier written an article on this topic reffering the judgement of Punjab and Haryana High court in R S Cotton Mills v. State of Punjab wherein it was decided that C or D forms could be filled even after the filling of the return or at the appellate stage and same could be taken cognizance of.
Hence the C forms can be submitted even after the filling of annual statement i.e. at the time of assessment or afterwards and the same can be taken cognizance of since no loss is caused to the revenue by not filling the C forms along with annual statement.
C forms generally should be submitted before the first assessing authority. After the assessment, appellate authority can allow submission of C forms if sufficient cause is shown for not submitting the C form before the assessing authority. This is because the appellate authority has powers of reassessment. Appeal in taxation matters is different from power of appellate court in civil matters. The appellate authority is in nature of revising authority. He can revise every process which led to the ultimate computation or assessment- State of AP v Hyderabad Asbestos Cement Products 94 STC 410.
It is advisable that the dealer should maintain proper record of follow up and efforts made with buyer to obtain C forms to prove that he made all possible attempts to obtain C forms within time. In such case it will help proving the sufficient cause for not submitting the C form within time and appellate authority will accept the C forms at appellate stage if obtained after assessment.
If sufficient cause is shown for late submission of C forms, the assessment can be reopened as it was held in Dtate of Tamilnadu v. Arulmurugan and co.- (1982) 51 STC 381(Mad HC DB)
source:http://www.lawyersclubindia.com/forum/SOME-ISSUES-PERTAINING-TO-C-FORMS-UNDER-CST-ACT-1956-24285.asp#.U4taQ_ldWAU
by sri. Amit Bajaj Advocate
