Ref No.A/2011-12/ 9th January, 2012

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Ref No.A/2011-12/ 9th January, 2012

To,
The Commissioner of Sales Tax,
8th Floor, Vikrikar Bhavan,
Mazgaon, Mumbai-400 010.

Hon’ble Sir,

Sub : Issuance of Declaration Forms

We would like to draw your attention to the following points regarding issuance of Declaration forms

a. C Form applications are being kept on hold in cases where the list of commodities mentioned in the C Form Application are not matching with the commodities mentioned in the CST Registration certificate. On an application being made by the dealer to the registration department the CST RC should be amended retrospectively to include the goods purchased from other states which are not mentioned in the CST RC and the C forms be issued based on accordingly.
b. In cases where the list of commodities had already been submitted at the time of obtaining the CST RC before the introduction of VAT, but the said details are not available on the department website, the same should be considered and C forms be issued.
c. The class of goods purchased by the dealer should be considered and not individual items.
d. Issuance of declaration forms should not be kept on hold on account of non-payment of penalty u/s 29(8) in the cases where opportunity of hearing was not granted to the dealer before levying such penalty.
e. Issuance of declaration forms should not be kept on hold on account of any outstanding dues payable by the dealer as has been decided by the courts in various judicial pronouncements.
f. There is no provision in law that Issuance of declaration forms should be made after verifying the amounts ‘As per application for declaration forms’ with the corresponding amounts ‘As per Return’. Issuance of declaration forms are being denied in cases where the amount of OMS Purchases / Branch Transfers mentioned in the returns are compared with the amounts mentioned in the applications for declaration forms. In case of mismatch the dealers are being asked to file revised returns. Queries are being raised by dealers in cases where Declaration Forms are required to be issued by the dealer and having already revised the return once, if there is further error noticed at the time of or after applying for declaration forms then such a dealer would be unable to revise the return again and the process of issuance of declaration forms would get affected/delayed. Kindly clarify how the declaration forms would be issued in time in such cases.
g. Declaration forms such as C / H etc are required to be issued on quarterly basis whereas F forms are required to be issued on monthly basis. The declaration forms are being issued to the dealers after comparing the amounts ‘As per application for declaration forms’ with the corresponding amounts ‘As per Return’ filed by the dealer. In cases where the periodicity of filing of returns by the dealer is half yearly the declarations are not being issued to the dealers for the months/quarter contained in that period until such half yearly return has been filed by the dealer. This resulting in considerable delay in issuance of declaration forms by the department and in turn by the purchasing dealer in Maharashtra to the selling dealer in the other state. As stated above there is no provision in law that Issuance of declaration forms should be made after verifying the amounts ‘As per application for declaration forms’ with the corresponding amounts ‘As per Return’. Kindly clarify how the declaration forms would be issued in time in such cases.
h. Rejections of applications should not be made without giving opportunity of hearing to the applicant dealer and clarification should be sought before rejecting any application. The department must send communication to the dealer before rejecting any application
and give time of 7 days for the dealer to reply. In case the application is being rejected, it should be by written order( and not e mail) so that appeal can be filed against such order.
i. It is urged that the department should have an positive approach and endeavor to issue the declaration forms rather than holding the same on small points of matching of amounts etc.
Other points
j. When the C form sent to Maharashtra dealer is lost in transit, as
per provisions of the CST Act, the dealer in Maharashtra has to submit
indemnity in Form G as per the CST Act.
However the Most of the Officers in Mazagaon are not aware of this and they refuse to accept the Form G.
k. Circular No. F.(11) Tax/CCT/2010/349 dtd. 27-05-11 based on GOI letter No. F.No.S.31013/9/2010-SO(ST), New delhi dated 15-03-11 regarding Acceptance of Computer Generated Self Printed Declaration Forms prescribed under the CST Act is attached herewith. The assessing officers may be kindly informed about the same.

Thanking You in anticipation..

For The Sales Tax Practitioners’ Association of Maharashtra,

CC to – Shri. R. R. Patil, Jt. Comm.of Sales Tax, Mumbai.