Rigid time limits for filing declaration forms under tax acts cannot be enforced if they conflict with statutory provisions allowing flexibility in submissions.

1. This is a writ petition under Art. 226 of the Constitution. The prayer is for the issue of a writ in the nature of certiorari quashing the assessment order dated, 30th of December, 1963 whereby the benefit under S.8(1) of the Central Sales Tax Act (hereinafter referred to as C.S.T. Act) in respect of the inter State sales was denied because of the petitioner's failure to file the declaration in form 'C' by the 31st March 1963, in accordance with the Circular issued by the Commissioner Sales Tax, Uttar Pradesh, dated 31st January 1963.

2. The facts leading up to this petition lie in a very narrow compass. They are : that the petitioner was a dealer in Khal, Oil, Kirana and Food grains and carried on business on his own account as well as on behalf or U.P. and Ex. U.P. Principals. In the relevant assessment year 1959-60, the total sales were of Rs.21,94,416.78 np. out of which the sales outride U.P. were of Rs.167,212-98 np. The petitioner filed all the quarterly returns showing his gross sales and net sates made to Ex. U.P. dealers as required by the C.S.T. Act read with R.5 of the Central Sales Tax (U.P.) Rules (hereinafter referred to as C.S.T. (U.P.) Rules); but did not file the declaration in form 'C' along with the returns as required by R.8(2) of the C.S.T. (U.P.) Rules. The reason given for the failure to attach form 'C' with the quarterly returns was that those forms had not been received from the Ex. U.P. dealers by that time. 235 'C' forms however, were admittedly filed by the - petitioner on 21-12-1963 covering the inter - State Ex. U.P. sales of Rs.16,1601-81 np.
The assessment was made on the 30th December 1962. In regard to the remaining sales of Rs.5911.17 np. no form 'C' was submitted as those sales were made to unregistered dealers. The Sales Tax Officer, however, by his assessment order dated, 30th December, 1963 considered that as the 'C' forms were not filed within the time prescribed, which according to him meant the Circular of the Commissioner, whereby the time for acceptance of 'C' forms was extended upto the 31st March, 1963. As the 'C' forms were filed on the 21st December, 1963, which was after the date prescribed in the said Circular the petitioner was denied the benefit of the provisions of S.8(1) of the C.S.T. Act and was taxed on inter - State sales to registered dealers at 7 per cent instead of 1 per cent which otherwise would have been levied. The writ petition challenges the assessment order.

3. The main contention of the learned counsel for the petitioner is that the Circular issued by the Commissioner of Sales Tax, which the Sales Tax Officer considered to prescribe the time limit for accepting 'C' forms has no statutory force and even R.8(2) of the C.S.T. (U.P.) Rules is ultra vires S.8(4) of the C.S.T. Act. It was further contended that R. 8(2) of the C.S.T. (U.P.) Rules if inconsistent with R. 5A of the same Rules. The former requires the 'C' forms to be attached to the quarterly returns, which have to be filed within a month of the expiry of the particular quarter, whereas R. 5A requires the same to be filed at any time before the assessment is completed. The reasonability of R.8(2) of the C.S.T., (U.P.) Rules is also challenged. Reliance is placed on a Full Bench decision of the Kerala High Court in Abraham v. Sales Tax Officer , (1964) 15 STC 110 : (AIR 1964 Ker. 131 (FB)).

4. The Kerala Full Bench was concerned with the vires of the third proviso to R.6 of the Central Sales Tax (Kerala) Rules as it then stood, which provide