Modi Industries LTD vs. Commissioner Delhi Value Added Tax & Anr.
Original PDF →Facts
The Petitioner, Modi Industries Ltd., filed a writ petition challenging the rejection of its application for Form ‘F’ by the Department of Trade and Taxes. Form ‘F’ is required for goods transferred under inter-state trade. The Petitioner sought to rectify its DVAT returns for the third quarter of 2018-19 to enable the issuance of these statutory forms. The Department had rejected the application. The case was adjourned to consider the impact of a Supreme Court stay on a similar judgment relied upon by the Petitioner, M/s Ingram Micro India Pvt. Ltd. v. Commissioner, Department of Trade and Taxes & Anr., and to explore potential schemes for resolving such issues for numerous petitioners.
Held
The Court, following a coordinate bench's decision in GSP Power System Pvt. Ltd. vs. Commissioner of Goods and Services Tax Department of Trade and Taxes & Anr., permitted the Petitioner to rectify its DVAT returns for the third quarter of 2018-19 by filing a revised return. This rectification was to enable the issuance of statutory ‘F’ Forms. However, the Court explicitly stated that these directions would remain suspended until the appeals pending before the Supreme Court, specifically the appeal in Ingram Micro India Pvt. Ltd. and M/s Commissioner, VAT Delhi & Ors. v. M/s Indian Oil Corporation Ltd., are decided. The Court held that its direction would abide by the final decision rendered by the Supreme Court in these appeals. The Court found no useful purpose in keeping the petition pending.
Key Issues
1. Whether the Petitioner can be permitted to rectify its DVAT returns for the third quarter of 2018-19 to enable the issuance of statutory ‘F’ Forms, considering the pendency of appeals before the Supreme Court concerning similar issues? Petitioner's Contention: The Petitioner argued that the rejection of its request for correction of returns and refusal to issue statutory forms was perverse and contrary to the provisions of the DVAT Act and Central Sales Tax (Delhi) Rules, which permit the issuance of such forms. They relied on previous High Court judgments that allowed such rectifications. Respondents' Contention: The Respondent (Department) contended that the High Court judgment in M/s Ingram Micro India Pvt. Ltd. v. Commissioner DT&T & Anr., which was relied upon by the Petitioner, was under challenge before the Supreme Court. They further pointed out that similar High Court decisions had been appealed and the Supreme Court had stayed their operation. The Respondent argued that directions issued by the High Court in similar matters were suspended pending the Supreme Court's decision.
Sections Cited
Central Sales Tax (Delhi) Rules, DVAT Act
AI-generated summary — verify with the full judgment below
Heard together (2 matters)
Read from the judgment's own cause title. This page is filed under one of them.
$~2 * IN THE HIGH COURT OF DELHI AT NEW DELHI Date of Decision: 20th May, 2025 + MODI INDUSTRIES LTD .....Petitioner Through: Mr. Dev Raj Sharma, Mr. Sarthak Asthana, Mr. Ashoke Chakrabartty, Advocates. versus COMMISSIONER DELHI VALUE ADDED TAX & ANR. .....Respondents Through: Mr. K.G.Gopalakrishnan, Ms. Nisha Mohandas, Mr. Girish Kumar Kaul, Mr. Kunwar Raj Singh, Advocates. Mr. Aditya Kumar Jha, Asstt. Commissioner, Ward 208-206, KCS Zone, Deptt. Of Trade & Taxes. Ms. Urvi Mohan, Advocate for R/GNCTD. CORAM: JUSTICE PRATHIBA M. SINGH JUSTICE RAJNEESH KUMAR GUPTA Prathiba M. Singh, J. (Oral)
This hearing has been done through hybrid mode.
The present petition has been filed by the Petitioner- Modi Industries Ltd. under Article 226 and 227 of the Constitution of India, inter alia, assailing the order dated 20th November 2024, by which the application filed by the Petitioner for issuance of Form ‘F’ in respect of the goods transferred under inter-state trade and commerce was rejected by the Department of Trade and Taxes. W.P.(C) 4241/2025 3. The present case was adjourned vide order dated 3rd April, 2025 which reads as under:
“5. Ld. counsel for the Respondent submits that the judgment relied upon by the Petitioner namely M/s IngramMicro India Pvt. Ltd. v. Commissioner, Department of Trade and Taxes & Anr. in W.P. (C) 8272/2015 decided on 1st February 2016 has been stayed by the Supreme Court and there are connected cases which are adjourned sine die.
Let Ms. Mohan, ld. Counsel for the Respondent, place on record a short note in this regard.
Ld. Counsel for the Respondent shall also seek instructions if some specific scheme can be announced by the Department to resolve this issue as there are a large number of writ petitions in which the Petitioners wish to file their revised returns for rectification.
The Registry shall also place before this Court a list of the matters which have a similar issue.
A competent Official from the concerned Department shall remain physically present on the next date with proper instructions in this matter.
List on 20th May, 2025”
Ld. Counsel for the parties submits that the appeal being C.A. No. 004573/2017 titled ‘Commissioner Department of Trade and Taxes v. Ingram Micro India Pvt. Ltd.’ filed by the Department assailing the judgment dated 1st February passed by a Co-ordinate bench of this Court in W.P. (C) 8272/2015 titled ‘Ingram Micro India Pvt. Ltd. v. Commissioner Department of Trade and Taxes & Anr.’ is still pending in the Supreme Court.
Ld. Counsel for the parties have relied upon certain other decisions of W.P.(C) 4241/2025 the Co-ordinate Bench including the decision in W.P. (C) 7411/2020 titled Department of Trade and Taxes & Anr.. The said matter was also a similar matter decided while the appeal was pending in the Supreme Court against Ingram Micro (Supra). The operative portion of the said decision reads as under:
“2. Present writ petition has been filed challenging the rejection by respondent authorities of petitioner's request for correction of the return filed for first quarter of Year 2017-18 and refusal to give statutory forms under Central Sales Tax (Delhi) Rules.
Petitioner further seeks a direction to the respondent authorities to allow the petitioner's revision of returns for the year 2017-18 as per the provisions of DVAT Act and Rules.
Learned counsel for the petitioner states that the petitioner failed to mention the details of Inter-State branch transfers for the first quarter of Year 2017-18 in the Form 2A uploaded on the DVAT website while filing his returns. He further states that petitioner requested the respondent no.2 to grant permission to revise the aforesaid returns but the said request was rejected.
He submits that action of the respondent no.2 of not allowing revision of details of requirement of form 'F', is perverse in law as it is contrary to the provisions of the DVAT Act and Central Sales Tax (Delhi) Rules which permit issuance of forms.
He relies upon the judgment of this Court in WP(C) No.8709/2018 whereby this Court had directed the respondent to release the concerned form 'F' within two weeks. He, however, points out that SLP preferred. against the said judgment has been admitted and the matter is pending before the Supreme Court.
On the other hand, Mr. Satyakam, learned Additional Standing counsel for the respondents submits that the decision of this Court in M/s Ingram Micro India Pvt. Ltd. v. W.P.(C) 4241/2025 Commissioner DT&T & Anr., W.P. (C No. 8272/2015 is under challenge before the Supreme Court in Civil Appeal No. 4573/2017 and the Supreme Court has granted leave in the said matter vide order dated 27th March, 2017. He also points out that this Court rendered decisions in several similar cases, including W.P. (C) No. 2633/2017, M/s. Indian Oil Corporation Ltd. v. Commissioner, VAT decided on 11th April, 2017, which have been appealed against in the Supreme Court and the Supreme Court has stayed the operation of the judgment of this Court.
Mr. Satyakam points out that in the light of the interim orders passed by the Supreme Court, while deciding another writ petition i.e. Ingram Micro India Ltd. v. Commissioner, Department of Trade and Taxes and Anr., W.P. (C) No. 8435/2018, decided on 04th December, 2018, this Court issued directions for issuance of segregated and separate ‘C' Forms. However, the directions issued by this Court were suspended till the Civil Appeals before the Supreme Court were pending.
Same is the position in the decision of this Court in Allied Automation Engineering Services Pvt. Ltd. v. Commissioner of Trade and Taxes, W.P. (C) No. 9474/2018 decided on 10th September, 2018, in M/s. Samsung C&T Pvt. Ltd. v. The Commissioner, Trade & Taxes, & Anr., W.P. (C) No. 4092/2017 decided on 15th February, 2019, in E.I. Dupont India Private Limited v. Commissioner, VAT, Delhi & Anr, C.M. No. 47356/2018 in W.P. (C) No. 4952/2017 decided on 27th February, 2019 and C G Power And Industrial Solutions Limited vs Department of Trade and Taxes & Ors., W.P. (C) No. 3024/2019 decided on 15th January, 2020. 10. Mr. Satyakam contends that this Court has recently in similar matters been either adjourning matters or is allowing the petition but suspending the 11. Having heard the counsel for the parties, this Court is of the view that no useful purpose would be served by keeping the petition pending. Consequently, this Court directs the respondent no.2 to allow the amendment sought by the petitioner in its return of first Quarter for the Financial Year 2017-18. However, this direction shall remain suspended till W.P.(C) 4241/2025 the Civil Appeals pending before the Supreme Court, taken note of hereinabove, are decided and this direction shall abide by the decision that the Supreme Court renders.
With the aforesaid direction, present writ petition and pending application stand disposed of.
Following the said decision of the Co-ordinate Bench of this Court in GSP Power System Pvt. Ltd. (Supra), in the facts of the present case, the Petitioner is permitted to rectify its DVAT returns for the third quarter of 2018-19 by filing a revised return for the said period to enable issuance of the statutory ‘F’ Forms.
These directions shall however remain suspended till the appeal in Ingram Micro India Pvt. Ltd. (Supra) as also the M/s Commissioner, VAT Delhi & Ors. v. M/s Indian Oil Corporation Ltd. [SLP(C) No. 13928/2017] are pending before the Supreme Court and are decided. This direction shall abide by the decision of the Supreme Court in the said case.
The present petition is disposed of in these terms. Pending applications, if any are also disposed of. PRATHIBA M. SINGH JUDGE RAJNEESH KUMAR GUPTA JUDGE MAY 20, 2025 v/ck
Reproduced from the public record of the Delhi High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.