Bharat Trading Corporation Vs State of Assam (Gauhati High Court)
Gauhati High Court held that the benefit conferred under Section 6(2) of the Central Sales Tax Act, 1956 [CST Act] cannot be denied merely because the ‘C’ forms were not furnished. Accordingly, writ petition stands allowed.
Facts- The petitioner is a dealer engaged in sale and supply of acids and chemicals. The petitioner received an order from the Hindustan Paper Corporation Limited for supply of caustic soda. The Petitioner purchased the said item from a registered dealer outside the State of Assam and when the goods were in course of movement in inter-state trade and commerce by transfer of documents of title to the goods, supplied the same to the Hindustan Paper Corporation Limited.
As per Section 16(2) of the Central Sales Tax Act, 1956, subsequent sale made in course of interstate trade and commerce is exempted from the payment of Central Sales Tax on the dealer furnishing a declaration Form – ‘E-1’ from the dealer making the first sale and a declaration in Form — ‘C’ from the recipient of the goods i.e. ultimate purchaser. Thereby the Petitioner was required to produce Form — ‘E-1’ from dealer outside the State of Assam from whom the Petitioner purchased the caustic soda in course of interstate trade and commerce and a declaration Form —‘C’ from the Hindustan Paper Corporation Limited and on production of the ‘E-1’ Form and ‘C’ Form, the Petitioner was not liable to make payment of the Central Sales Tax in respect of the supply of caustic soda to the Hindustan Paper Corporation of India.
