Supreme Court to Hear Sales Tax Demand for Invalid ST-1 Forms

Commissioner of Trade and Taxes Delhi Vs DCW Limited (Supreme Court of India)

The Supreme Court is set to hear a significant case involving sales tax demand linked to the use of invalid ST-1 Forms. This case pits the Revenue against DCW Limited, with crucial implications for both parties.

The case revolves around a sales tax demand raised against DCW Limited for the use of allegedly invalid ST-1 Forms. While the Revenue argues that DCW Limited is liable for the sales tax demand, DCW Limited, represented by learned Senior Counsel Mr. Gaurav Pachnanda, counters that the forms in question were provided by purchasing dealers. DCW Limited asserts that it merely presented these forms to the taxing authorities and had no direct involvement in their issuance.

Crucially, DCW Limited’s defense rests on the fact that the underlying transactions are not in dispute. Both sides agree on the authenticity of the transactions, leading the High Court to rule in favor of DCW Limited by quashing the sales tax demand.

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