Inter-state stock transfer — Production of F Form — Goods returned or goods transferred on jobwork — Decision of SC that where F Form not produced by dealer without his fault, transactions to be assessed on merit — Direction by High Court — Section 6A of the Central Sales Tax Act, 1956.

Following the judgment in case of Ambica Steels Limited v. State of U.P., (2009) 24 VST 356 (SC), the Commissioner of Trade Tax issued Circular dated June 26, 2009 to the effect that where the trader/dealer of the State of U.P. had not received ‘F’ form the transferee in the other State, or where form F is not issued without any fault on the part of trader/dealer in the State of UP, the Assessment Authority shall examine the transactions between the parties, and will complete the assessment on merits. In view of the later development, the issue was raised before the High Court to consider applicability of section 6A, for production of F form, only with regard to transactions involving job work and goods return. The High Court without deciding on merit of the case issued directions.

Held:

(1) In all cases of assessment and reassessment in which the transactions of job work and goods returned are involved, the assessment/ re-assessment orders are set aside only to the extent that the tax was imposed on such transactions for want of form F.

(2) The petitioners were directed to appear before the authorities to decide the case on its merits after examining the transactions between parties, keeping in mind findings recorded earlier in assessment on such transactions and also that the asseessee is not in a position to obtain form F, for no fault of his.