- (1.) This revision petition has been filed by the petitioner-Revenue against the order of learned Tax Board dated 30.8.2002 dismissing Revenue's Appeal No. 192/2001/Pali (Asstt. Commissioner, Special Circle, Pali vs. M/s. Jagdish Patel, Pali). The question of law involved in the present case is as to whether a notarized photocopies of declaration Form ST-17 for availing the concessional rate by the selling dealer is furnished by the purchasing dealer is sufficient compliance with Rule 23 read with section 5(3) of the R.S.T. Act, and whether in the absence of original declaration Form ST-17, such a benefit could be extended to the assessee. The Assessing Authority in the original assessment order had disallowed this benefit while passing the impugned assessment order on 4.9.1998 for the assessment year 1.4.1996 to 31.3.1997 (1996-97).
(2.) The assessee applied for rectification of the said order under Section 37 of the Act, which also came to be rejected by the Assessing Authority on 22.2.1999 vide Annex. 2. The assessee thereafter approach the learned Deputy Commissioner (Appeals), which appeal came to be allowed by the Deputy Commissioner (Appeals) vide order dated 5.9.2000 relying upon a decision of Rajasthan High Court in the case of C.T.O. vs. M/s. Rajasthan Jan Jati Khahetriya Vikas Nigam, Udaipur, 1994 2 STO 263 in which the learned Single Judge has held that photocopies of the original cannot be said to be an evidence other than ST-17, however, the authorities should examine the genuineness of the photocopies and should give benefit of exemption/concession. Therefore, the order of the lower authorities setting aside the such taxes and interest imposed against the assessee was not interfered by this Court.
(3.) Learned counsel for the petitioner-Revenue, Mr. Lokesh Mathur submitted that the controversy involve in the present case is no longer re-integra in view of Hon'ble Supreme Court decision in the case of India Agencies (Regd.), Bangalore, 2005 2 SCC 129 in which the Apex Court relying upon its earlier judgments in the case of Kedarnath Jute Mfg. Co. vs. C.T.O., 1966 AIR(SC) 12, Delhi Automobiles (P) Ltd. vs. C.S.T., 1997 10 SCC 486and State of Madras vs. R. Nandlal & Co., 1967 AIR(SC) 1758 in paras 14 and 15 has held as under: 14. We are of the view that Rule 6(b)(ii) of the Central Sales Tax (Karnataka) Rules, 1957 which provides for furnishing of the original C Form in order to claim the concessional rate of tax is consistent with the provisions of the Central Sales Tax and there is no conflict between the provisions of Rules 12(2) and (3) of the Central Sales Tax Rules and Rule 6(b)(ii) of the Central Sales Tax (Karnataka) Rules, 1957 as contended by the appellant. Rule 12 of the Rules is intended to prevent misuse of C Forms by unscrupulous and mischievous dealers and makes it obligatory for the dealer to furnish indemnity bond. In other words, in order to claim concessional rate of tax, the original C Form has to be attached to the return as provided under Rule 6(b)(ii) of the Central Sales Tax (Karnataka) Rules, 1957. It is not a mere formality or technicality but it is intended to achieve the object of preventing the forms being misused for the commission of fraud and collusion with a view to evade payment of taxes. In our opinion, Rule 6(b)(ii) which is clear and categoric cannot be liberally construed but it should be construed strictly. We, therefore, hold that without producing the original of the C Forms as prescribed under Rule 6(b)(ii) of the Rules, the appellant is not entitled to concessional rate of tax under sub-section (4) of Section 8 of the Act. 15. The very purpose of prescribing the filing of C Forms is that there should not be suppression of any interstate sales by a selling-dealer and evasion of tax to the State form where the actual sales are effected. Secondly, the purchasing dealer also cannot suppress such purchases once he issues C Form to the selling dealer. Since the dealer should issue C Form, he has to maintain a detailed account of such C Forms obtained from the department prescribed under the State's taxation law. The C Form is a declaration to be issued only by the Sales Tax Authorities of the States concerned. By issuing declaration in C Form in purchasing dealer would be benefited as he is entitled to purchase goods by paying only concessional rate of tax of 4% as prescribed by the State concerned of the purchasing dealer otherwise the purchasing dealer has to pay tax at a higher rate besides additional taxes on such sales effected within the State where the selling dealer is situated.;