Declaration forms under the CST Act, 1956Late submission Filing with the return is a directory provision

S.No.2477   :   F.16(97)Tax/CCT/14-15/5467 dated 23.1.2015

Rule 12(7),  CST (Registration and Turnover) Rules, 1957, empowers the AA that if he is satisfied that the person concerned was prevented by sufficient cause from furnishing such declaration or certificate within the prescribed time, he may allow to furnish such declaration or certificate within such further time as he deems fit. But this has been brought to my knowledge that the some AAs do not consider sufficient cause in the spirit of the said rule.

On this subject matter, the Hon’ble Supreme Court in the case of State of Himachal Pradesh v. Gujarat Ambuja Cement Ltd. (2005) 142 STC 1 has held as under (para 40):–

“On an application being made before the Assessing Officer the exemption can be granted. The object of the Rule 12(7) is to ensure that the assessee is not denied a benefit which is available to it under law on a technical plea. The Assessing Officer is empowered to grant time. That means that the provisions requiring filing of declaration forms along with the return is a directory provision and not a mandatory provision. In a given case even the declaration forms can be filed before the appellate authority as an appeal is continuation of the assessment proceedings. In a given case, if the appellate authority is satisfied that assessee was prevented by reasonable and sufficient cause which dis-enabled him to file the forms in time, it can be accepted. It can also be accepted as additional evidence in support of the claim for deduction. In the instant case, respondent No.1 Company made a specific request before the revisional authority which was turned down. Therefore, the question of any non-compliance with the relevant statutes does not arise. It was noted by this Court in Sahney Steel and Press Works Ltd. v. Commercial Tax Officer (1985) 4 SCC 173 that even in a given case, an assessee can be given an opportunity to collect Declaration forms and furnish them to the AA if the challenge of the assessee to taxability of a particular transaction is turned down.”

The declaration forms/certificates are proof for concessional rate of tax, and are required to assess the dealer at the applicable rate of tax at the time of assessment. In view of the above mentioned Hon’ble Supreme Court judgement, it is directed that if a dealer submits declaration forms/certificates, even after the stipulated period along with an application mentioning the cause for delay, the AA should accept it after ascertaining that the dealer was prevented by a sufficient cause for not furnishing the declaration forms/certificates in time.