The Hon’ble High Court of Delhi vide order dated 05.08.2019 in the case of Sheel Chand Agroils (P) Ltd. v. Government of NCT of Delhi in W.P.(C) 3245/2019 set aside the impugned notification issued by Commissioner, DVAT cancelling the used F Forms. The Hon’ble Court relied on its earlier decision in Maa Jagdamba Traders v. Commissioner VAT W.P.(C) 13365/2018, wherein it was held that once the form that has been issued is utilized, the question of subsequently declaring such used forms as obsolete would not arise. On a collective reading of Rule 5(13) and 5(14) of the CST Delhi Rules, it was held that the said rules do not permit the Commissioner VAT to declare forms that have already been issued and acted upon as obsolete and that there is no legal basis for the Commissioner to cancel used F Forms.
In light of the view taken in Maa Jagdamba (supra), it was held that the impugned notification issued by Commissioner VAT cancelling the used F-Forms in the present case cannot be sustained.
The facts of the case involved in Sheel Chand (supra) were that the Petitioner had availed the benefit of 12 F Forms issued by purchasing dealer. The Commissioner invoking power under Rule 8(10) of CST Delhi Rules cancelled the said used F Forms. Aggrieved, the Petitioner preferred writ petition before Delhi High Court contending inter-alia that the Commissioner does not have any power to cancel “used” F Forms as obsolete and invalid. The Petitioner had also challenged the vires of Rule 8(10) on ground that CST Act does not delegate rule making power to the Government on the cancellation of the said F Forms.
The said order is attached herewith.
The case was argued by Adv. Puneet Agrawal with Adv. Gaurav Gupta and Adv. Chetan Kumar Shukla.