Gauhati HC Grants CST Section 6(2) Benefit Despite Non-Furnishing of ‘C’ Forms, Citing Uncontested Inter-State Movement of Goods

The Delhi High Court has ruled that a Non-Resident Indian (NRI) seller cannot be denied their full credit for Tax Deducted at Source (TDS) simply because the buyer made an error while filing their TDS return. The court ordered the tax department to process the refund claimed by the NRI seller. In this case, the buyer had incorrectly quoted their own PAN instead of the seller's PAN in the TDS statement, which resulted in the tax credit not being reflected in the seller's account. The High Court took a pragmatic view, stating that once the tax has been deducted and deposited with the government, the recipient should not be penalized for a clerical error made by the deductor. This judgment protects the rights of the seller and ensures that they receive credit for the tax already paid on their behalf.