In Brief
The State of Rajasthan challenged a High Court decision that invalidated a state rule allowing tax authorities to cancel declaration forms (Form C) allegedly obtained fraudulently. The Supreme Court held that the Central Government alone has power under the Central Sales Tax Act to regulate the form and content of declarations. State rules providing for cancellation of these forms are inconsistent with national rules and therefore invalid. The Court upheld the High Court's decision that the state lacked authority to create such a cancellation rule, even to prevent tax fraud, as this power belongs exclusively to the Central Government by statute.
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