Failure to consider the C’ and ‘F’ Declaration Forms submitted by assessee invalidates the Assessment Order under Central Sales Tax Act: Madras HC [Read Order]

In a recent judgement, the Madras High Court (HC) has held that failure to consider the C’ and ‘F’ declaration forms submitted by the assessee invalidates the Assessment Order under Central Sales Tax Act.

Balaji Machine Works Pvt. Ltd., the petitioner challenged the assessment orders also on the ground of Violation of Principles of Natural Justice. The petitioner alleges that the ‘C’ and ‘F’ Declaration Forms enclosed are acknowledged only by the Assistant of the respondent.

The respondent would categorically state that the ‘C’ and ‘F’ Declaration Forms said to have been enclosed by the petitioner along with its communications dated 17.05.2022 was never received by the respondent. The Acknowledgment of the Assistant in the respondent’ Office is not accompanied by the Office seal of the respondent.

The communication about the petitioner’s appearance for a personal hearing on 02.12.2022 was received by them only on 02.12.2022. The petitioner has not sent any communication to the respondent immediately thereafter informing them that they were unable to attend the personal hearing only due to the reason that they received the communication informing the date of the personal hearing only on 02.12.2022.  Further argued that they were unable to attend the personal hearing only the reason that they had received the communication only on the date of the personal hearing.

In the case of M/s. Arvind Remedies Ltd., Vs. The Assistant Commissioner (CT), it was held that if the documents viz., ‘C’ and ‘F’ Declaration Forms were submitted by the dealer after the passing of the assessment orders, the said communication enclosing the said Forms can be treated as a rectification petition under Section 84 of the TNVAT Act, 2006.

The Coram comprising of Justice Abdul Quddhose observed that since there is no violation of principles of natural justice till the date of the assessment orders, this Court is not interfering with the impugned assessment orders.

Further viewed that the petitioner has submitted the ‘C’ and ‘F’ Declaration Forms with the respondent on 20.01.2023, after passing of the impugned assessment orders, the petitioner is directed to file a fresh application under Section 84 of the TNVAT Act, 2006, seeking for rectification of the impugned assessment orders, enclosing the ‘C’ and ‘F’ Declaration Forms and all other required documents, within a period of one week from the date of receipt of a copy of this order.

The Court held that “after affording a personal hearing to the petitioner on the said date, the respondent shall pass final orders on merits and by law on the rectification application within a period of four weeks from the date of the personal hearing granted to the petitioner.”

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