I’ve been going through this excellent article http://msdn.microsoft.com/en-us/library/ms972976.aspx that says ViewState is not responsible for form fields to retain their values between postbacks. So form fields values are never stored in ViewState?
EDITED: What I mean form fields are ASP.NET controls like TextBox, Dropdownlist etc.
EDITED: If an user enters a value in an ASP.NET textbox and submit the form, the new page still has the textbox with that value I was thinking this is because of ViewState but the article says it’s not so!
As you say, form values are NOT stored in the viewstate. The reason that (for example) the text of a TextBox control is retained between two postbacks is because it implements the IPostBackDataHandler-contract and automatically maps the keys in the Request.Form-collection to the appropriate properties of the control. These two mechanisms are often confused.
See http://www.mikesdotnetting.com/Article/65/ViewState-form-fields-labels-and-Javascript for a good explanation.