Gujarat High Court Grants Pfizer Limited Exemption on Additional Form F Submissions

Court Directs State to Verify Transactions and Resolve Tax Dispute within Twelve Weeks

In a significant ruling, the Gujarat High Court has allowed Pfizer Limited to submit additional Form F for claiming exemption benefits under the Gujarat Value Added Tax Act, 2003. The decision comes after Pfizer's writ petition challenged the orders of the Gujarat Value Added Tax Tribunal, which had disallowed additional forms during appellate proceedings. The court has directed the respondents to verify the remaining transactions and determine the tax due within twelve weeks.

The bench, comprising Justices A.S. Supehia and Pranav Trivedi, emphasized the importance of Form F in validating stock transfers and the undue hardship caused by procedural delays in obtaining the form. The court granted a waiver for non-verified Form F related to the State of Rajasthan, acknowledging the petitioner's efforts and the prolonged litigation over the assessment year 2013-14.

The case stems from an assessment order in 2017, which confirmed a tax liability of Rs. 2.26 crore on Pfizer due to the inability to submit Form F for a significant portion of its inter-state branch transfers. Despite subsequent appeals and partial relief, Pfizer was unable to submit all necessary forms, leading to the current petition.

Pfizer, represented by Senior Advocate Mihir Joshi, argued that the delay in obtaining Form F from state authorities should not negate the reality of the stock transfers. The court, after considering submissions from both parties, including the Assistant Government Pleader Pooja Ashar, ruled in favor of allowing the additional submissions.

Bottom Line:

Gujarat Value Added Tax Act - Assessment Year 2013-14 - Consideration of Form F for exemption benefits - Held, petitioner allowed to submit and claim exemption based on verified Form F - Additional Form F submitted by petitioner to be considered - Waiver granted for non-verified Form F pertaining to the State of Rajasthan.

Statutory provision(s): Gujarat Value Added Tax Act, 2003, Articles 226 and 227 of the Constitution of India, Central Sales Tax Act, 1956.

Pfizer Limited v. State of Gujarat, (Gujarat)(DB) : Law Finder Doc Id # 2817606