C G Power And Industrial Solutions Limited vs. Department Of Trade & Taxes & Ors.

Facts

The petitioner, CG Power and Industrial Solutions Limited, sought a writ of mandamus directing the Department of Trade and Taxes (respondent No.1) to issue 'C' Forms to Delhi Transco Limited (respondent No.5) for purchases made during the financial year 2012-13. The petitioner also sought directions for respondents No.3 and 4 to accept 'C' and 'E1' Forms and make assessments accordingly, and to restrain coercive steps against the petitioner. The petitioner had entered into contracts with respondent No.5 for supplying equipment. Respondent No.5 failed to provide 'C' Forms for certain supplies, leading to an additional tax liability for the petitioner. Respondent No.5 acknowledged its failure to include these purchases in its returns and apply for 'C' Forms within the stipulated time, citing inadvertence. The petitioner argued that since respondent No.5 is a GNCTD undertaking, its omissions should not penalize the petitioner.

Held

The Court held that the distinction sought by the petitioner, based on respondent No.5 being a GNCTD undertaking, has no merit. Respondent No.5, as an assessee under the law, is bound by the same legal discipline as any other entity, irrespective of its status as a state instrumentality. The provisions of the DVAT Act and CST Act apply to respondent No.5 with equal force. The Court acknowledged the petitioner's grievance but found that it cannot seek a direction to issue 'C' Forms after over four years, when the transactions were not disclosed in the returns and no rectification was sought within the limitation period prescribed by Section 28 of the DVAT Act. The Court directed respondents No.1 to 3 to release 'C' Forms to respondent No.5 for the specified period, but this direction was made subject to the outcome of Civil Appeals pending before the Supreme Court and would abide by the Supreme Court's decision. The Court noted that its directions were suspended until the disposal of these appeals, referencing similar orders in other cases.

Key Issues

1. Whether the petitioner is entitled to a writ of mandamus directing the respondents to issue 'C' Forms for the financial year 2012-13, despite the delay and non-disclosure in the original returns filed by respondent No.5? Petitioner's Arguments: - Respondent No.5, being a government undertaking, failed to reflect sales in its returns and apply for 'C' Forms, causing undue hardship and potential penalty to the petitioner. - The petitioner cannot be made to suffer for the omissions of a government entity. - The petitioner has a cause of action against respondent No.5 for its failure. Respondents' Arguments: - 'C' Forms were not issued due to the non-inclusion of purchases in respondent No.5's returns for the relevant period (2012-13). - Section 28 of the Delhi Value Added Tax (DVAT) Act mandates revision of returns within one year of discovery of discrepancy. - Respondent No.5's communication seeking issuance of old 'C' Forms was made after a lapse of four years, beyond the statutory period for revision. - Provisions relating to returns, assessments, and refunds under the DVAT Act extend to the Central Sales Tax (CST) Act, including the one-year period for revision. - Decisions of this Court in similar matters, where 'C' Forms were sought after the statutory period, have been appealed before the Supreme Court, and interim orders have been passed staying the operation of High Court judgments.