Vogue Fabrics vs Bhilwara Spinners Ltd.

Arun Kumar, J.—By the impugned judgment suit filed by the appellant against the defendant M/s. Bhilwara Spinners Limited for recovery of Rs. 1,57,974.33 paisa has been dismissed. The appellant had made certain purchases form the respondent. Invoices were prepared on the representation made by the appellant that it was an export house and was Therefore competent to give H forms. H forms given by the appellant were not accepted by the Sales Tax Authorities. the appellant Therefore handed over C forms to the respondent which in turn were submitted to the Sales Tax authorities. The following assessment order, for the relevant period, was passed by the Sales Tax authorities:

"The dealer has filed 2 C forms in lieu of the H forms in support of export, hence amount of Rs. 6,33,916.80 shall be taxed @ 2% with interest. A penalty of Rs. 100/- is imposed for incorrect information."

The respondent had to pay sales tax at the rate of 1 per cent because of assessment made on the basis of supply f C forms instead of H forms and the penalty was also imposed. Accordingly respondent debited the account of the appellant with this amount along with interest. Suit was filed by the appellant for recovery of this amount which has been dismissed by the learned Trial Court. The learned Counsel for the appellant argued that the respondent had only paid the penalty of Rs. 150/- as per assessment order, and Therefore, it had no right to debit the account of appellant with an amount more than Rs. 150/-. This submission is clearly erroneous. A perusal of the assessment order shows that apart from penalty, sales tax at the rate f 1 per cent is also paid along with interest. The learned Trial Court has observed that after the assessment, respondent had raised debit note of the amount had also gave information to the appellant by letter Ex. PW-1/6 of the amount paid b the respondent to Sales Tax amount paid by the respondent to Sales Tax authorities for the years 1991-92, 1992-93 and 1993-94. The learned Trial Court further noted that plaintiff did not refute that sales tax despite the C forms would have been livable at the rate of 1 per cent and since payment of sales tax was the liability of the appellant, the account of the appellant was rightly debited by the respondent. This appeal is Therefore without any merit and is accordingly dismissed.

Appeal dismissed.