Modi Industries Ltd vs Commissioner Delhi Value Added Tax & Anr
2025 Latest Caselaw 3245 Del

Delhi High Court

Modi Industries Ltd vs Commissioner Delhi Value Added Tax & Anr on 20 May, 2025

Author: Prathiba M. Singh

Bench: Prathiba M. Singh

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                          *      IN THE HIGH COURT OF DELHI AT NEW DELHI
                                                                     Date of Decision: 20th May, 2025
                          +                   W.P.(C) 4241/2025
                                 MODI INDUSTRIES LTD                        .....Petitioner
                                              Through: Mr. Dev Raj Sharma, Mr. Sarthak
                                                         Asthana, Mr. Ashoke Chakrabartty,
                                                         Advocates.
                                              versus

                                 COMMISSIONER DELHI VALUE ADDED TAX & ANR.
                                                                           .....Respondents
                                             Through: Mr. K.G.Gopalakrishnan, Ms. Nisha
                                                      Mohandas, Mr. Girish Kumar Kaul,
                                                      Mr. Kunwar Raj Singh, Advocates.
                                                      Mr. Aditya Kumar Jha, Asstt.
                                                      Commissioner, Ward 208-206, KCS
                                                      Zone, Deptt. Of Trade & Taxes.
                                                      Ms. Urvi Mohan, Advocate for
                                                      R/GNCTD.

                                 CORAM:
                                 JUSTICE PRATHIBA M. SINGH
                                 JUSTICE RAJNEESH KUMAR GUPTA

                          Prathiba M. Singh, J. (Oral)

1. This hearing has been done through hybrid mode.

2. The present petition has been filed by the Petitioner- Modi Industries Ltd. under Article 226 and 227 of the Constitution of India, inter alia, assailing the order dated 20th November 2024, by which the application filed by the Petitioner for issuance of Form 'F' in respect of the goods transferred under inter-state trade and commerce was rejected by the Department of Trade and Taxes.

3. The present case was adjourned vide order dated 3rd April, 2025 which reads as under:

"5. Ld. counsel for the Respondent submits that the judgment relied upon by the Petitioner namely M/s IngramMicro India Pvt. Ltd. v. Commissioner, Department of Trade and Taxes & Anr. in W.P. (C) 8272/2015 decided on 1st February 2016 has been stayed by the Supreme Court and there are connected cases which are adjourned sine die.

6. Let Ms. Mohan, ld. Counsel for the Respondent, place on record a short note in this regard.

7. Ld. Counsel for the Respondent shall also seek instructions if some specific scheme can be announced by the Department to resolve this issue as there are a large number of writ petitions in which the Petitioners wish to file their revised returns for rectification.

8. The Registry shall also place before this Court a list of the matters which have a similar issue.

9. A competent Official from the concerned Department shall remain physically present on the next date with proper instructions in this matter.

10. List on 20th May, 2025"

4. Ld. Counsel for the parties submits that the appeal being C.A. No. 004573/2017 titled 'Commissioner Department of Trade and Taxes v. Ingram Micro India Pvt. Ltd.' filed by the Department assailing the judgment dated 1st February passed by a Co-ordinate bench of this Court in W.P. (C) 8272/2015 titled 'Ingram Micro India Pvt. Ltd. v. Commissioner Department of Trade and Taxes & Anr.' is still pending in the Supreme Court.

5. Ld. Counsel for the parties have relied upon certain other decisions of

the Co-ordinate Bench including the decision in W.P. (C) 7411/2020 titled GSP Power System Pvt. Ltd. vs. Commissioner of Goods and Services Tax Department of Trade and Taxes & Anr.. The said matter was also a similar matter decided while the appeal was pending in the Supreme Court against Ingram Micro (Supra). The operative portion of the said decision reads as under:

"2. Present writ petition has been filed challenging the rejection by respondent authorities of petitioner's request for correction of the return filed for first quarter of Year 2017-18 and refusal to give statutory forms under Central Sales Tax (Delhi) Rules.

3. Petitioner further seeks a direction to the respondent authorities to allow the petitioner's revision of returns for the year 2017-18 as per the provisions of DVAT Act and Rules.

4. Learned counsel for the petitioner states that the petitioner failed to mention the details of Inter-State branch transfers for the first quarter of Year 2017-18 in the Form 2A uploaded on the DVAT website while filing his returns. He further states that petitioner requested the respondent no.2 to grant permission to revise the aforesaid returns but the said request was rejected.

5. He submits that action of the respondent no.2 of not allowing revision of details of requirement of form 'F', is perverse in law as it is contrary to the provisions of the DVAT Act and Central Sales Tax (Delhi) Rules which permit issuance of forms.

6. He relies upon the judgment of this Court in WP(C) No.8709/2018 whereby this Court had directed the respondent to release the concerned form 'F' within two weeks. He, however, points out that SLP preferred. against the said judgment has been admitted and the matter is pending before the Supreme Court.

7. On the other hand, Mr. Satyakam, learned Additional Standing counsel for the respondents submits that the decision of this Court in M/s Ingram Micro India Pvt. Ltd. v.

Commissioner DT&T & Anr., W.P. (C No. 8272/2015 is under challenge before the Supreme Court in Civil Appeal No. 4573/2017 and the Supreme Court has granted leave in the said matter vide order dated 27th March, 2017. He also points out that this Court rendered decisions in several similar cases, including W.P. (C) No. 2633/2017, M/s. Indian Oil Corporation Ltd. v. Commissioner, VAT decided on 11th April, 2017, which have been appealed against in the Supreme Court and the Supreme Court has stayed the operation of the judgment of this Court.

8. Mr. Satyakam points out that in the light of the interim orders passed by the Supreme Court, while deciding another writ petition i.e. Ingram Micro India Ltd. v. Commissioner, Department of Trade and Taxes and Anr., W.P. (C) No. 8435/2018, decided on 04th December, 2018, this Court issued directions for issuance of segregated and separate 'C' Forms. However, the directions issued by this Court were suspended till the Civil Appeals before the Supreme Court were pending.

9. Same is the position in the decision of this Court in Allied Automation Engineering Services Pvt. Ltd. v. Commissioner of Trade and Taxes, W.P. (C) No. 9474/2018 decided on 10th September, 2018, in M/s. Samsung C&T Pvt. Ltd. v. The Commissioner, Trade & Taxes, & Anr., W.P. (C) No. 4092/2017 decided on 15th February, 2019, in E.I. Dupont India Private Limited v. Commissioner, VAT, Delhi & Anr, C.M. No. 47356/2018 in W.P. (C) No. 4952/2017 decided on 27th February, 2019 and C G Power And Industrial Solutions Limited vs Department of Trade and Taxes & Ors., W.P. (C) No. 3024/2019 decided on 15th January, 2020.

10. Mr. Satyakam contends that this Court has recently in similar matters been either adjourning matters or is allowing the petition but suspending the

11. Having heard the counsel for the parties, this Court is of the view that no useful purpose would be served by keeping the petition pending. Consequently, this Court directs the respondent no.2 to allow the amendment sought by the petitioner in its return of first Quarter for the Financial Year 2017-18. However, this direction shall remain suspended till

the Civil Appeals pending before the Supreme Court, taken note of hereinabove, are decided and this direction shall abide by the decision that the Supreme Court renders.

12. With the aforesaid direction, present writ petition and pending application stand disposed of.

6. Following the said decision of the Co-ordinate Bench of this Court in GSP Power System Pvt. Ltd. (Supra), in the facts of the present case, the Petitioner is permitted to rectify its DVAT returns for the third quarter of 2018-19 by filing a revised return for the said period to enable issuance of the statutory 'F' Forms.

7. These directions shall however remain suspended till the appeal in Ingram Micro India Pvt. Ltd. (Supra) as also the M/s Commissioner, VAT Delhi & Ors. v. M/s Indian Oil Corporation Ltd. [SLP(C) No. 13928/2017] are pending before the Supreme Court and are decided. This direction shall abide by the decision of the Supreme Court in the said case.

8. The present petition is disposed of in these terms. Pending applications, if any are also disposed of.

PRATHIBA M. SINGH JUDGE

RAJNEESH KUMAR GUPTA JUDGE MAY 20, 2025 v/ck