Case Law Details
Indo Silicon Electronics Pvt. Ltd. Vs Commissioner Trade & Taxes & Ors. (Delhi High Court)
In the present case, there is no dispute that the purchasing dealer was duly registered with the Rajasthan Tax Authorities in respect of the goods sold by the petitioner. There is also no dispute that the C Forms are genuine and had been issued by the concerned authority at the material time.
In this view, the benefit of the C Forms cannot be denied to the petitioner.
It is necessary to bear in mind that C Forms are an integral part of the consideration received by the selling dealer. The commercial bargain struck by dealers factors in the value of these forms. The effect of denying the benefit of the C Forms would amount to rewriting a commercial transaction that has been consummated. The cancellation of C Forms at a subsequent date would have a disruptive effect on the stream of commercial transactions, which is impermissible.
Court, in Jain Manufacturing (India) Pvt. Ltd. v. The Commissioner Value Added Tax & Anr. : W.P.(C) 1358/2016, had held that cancellation of C Forms with retrospective effect is not permissible.
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