The Allahabad High Court has held that a single Form-C cannot be used to claim concessional tax for transactions spanning multiple quarters. The Court clarified that when delivery and sale transactions occur in different quarters, the assessee is required to submit separate Form-Cs for each quarter in compliance with the third proviso to Section 12 of the Act and Rule 12(1) of the Central Sales Tax (Registration and Turnover) Rules, 1957.
Justice Piyush Agarwal, sitting as a Single Judge Bench, allowed the revision petition filed by the revenue department and set aside the orders of the Tribunal and lower appellate authorities, which had wrongly allowed the benefit of a single Form-C covering two quarters in favour of the respondent-manufacturer engaged in the leather trade.
The dispute arose after the Assessing Officer (AO) denied CST concessional rate benefits to the respondent, holding that the Form-C submitted covered transactions pertaining to two different quarters, in violation of Rule 12(1). Although the AO’s order was overturned in appeal, the State challenged the appellate decision on grounds of legal error and non-compliance with the statutory requirement.
The High Court agreed with the revenue’s position, observing that once it is established that delivery occurred in two separate quarters, the assessee is mandatorily required to file distinct Form-Cs for each quarter. The Court further held that the appellate authority’s failure to reverse the AO’s factual finding amounted to implicit acceptance of the same, thereby rendering the grant of benefit legally unsustainable.
Accordingly, the Court allowed the revision, reinforcing the principle that strict procedural compliance is necessary to avail benefits under CST law, and that **a single Form-C cannot suffice for transactions spanning multiple quarters.
Appearance:
Advocate Bipin Kumar Pandey appeared for the Revisionist / Department.