9911796707
TMI Blog1964 (8) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... ver in 1959-60, the sum in dispute before us is Rs. 2,08,343-45 nP. which represents the sales effected to registered purchasing dealers in Punjab. On the ground that the C Forms supplied by the purchasing dealers in the Punjab, and filed by the assessee for the inter-State sales effected by him, did not comply with the rules, he was assessed at 7 per cent. on these sales and was denied the benefit of assessment at the lower rate of 1 per cent. The specific ground on which the benefit of lower rate of assessment was denied was that the C Form contravened rule 10(1) of the rules framed by the Madras State under the Central Sales Tax Act. The rule states that no single declaration shall cover more than one transaction of sale. Apparently the Punjab purchasing dealers gave C Forms in which they have included all the purchases effected by them from the Madras dealer during the year of assessment. The appeal to the Appellate Assistant Commissioner as well as to the Appellate Tribunal failed and the assessee has come before this Court in revision. Learned counsel for the petitioner-assessee urged that the registered dealers in Punjab who gave C Forms to the assessee had complied wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be in counterfoil, duplicate and original. The counterfoil is to be retained by the purchasing dealer, the duplicate by the selling dealer and the original is to be furnished to the prescribed authority in accordance with the rules framed under section 13(4)(e) by the appropriate State Government. The form contains columns for giving, inter alia, the name of the purchasing dealer to whom issued along with his Registration Certificate No. The name of the seller has to be mentioned and it has to be certified that the goods ordered for in a specified purchase order were purchased from the selling dealer as per specified bill, cash memo and supplied under specified challan Nos. The purposes for which the goods were supplied are to be mentioned under four different heads. Thereafter, the purchasing dealer gives his address and puts also his signature. The State Government has also framed a set of rules for the purpose, under section 13(4)(a). We are now concerned with rules 10(1) and 10(2) framed by the Madras State Government. Rule 10(1) reads: "A registered dealer, who wishes to purchase goods from another such dealer on payment of tax at the rate applicable under the Act to s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nly to the officers in the Madras State and the registered purchasing dealer must refer only to a dealer in the Madras State. The scheme of the Central Sales Tax Act dealing with inter-State sales is for the registered purchasing dealer to obtain appropriate C Forms from the authorities in his own State, and supply them after filling the particulars to the registered selling dealers in other States. Further, the foot-note at the bottom of C Form would show that, out of the three copies of C Form, the purchasing dealer has to retain one and sent two to the selling dealer. For this purpose the purchasing dealer has to obtain C Forms from his own State and fill up the particulars. There is also the provision for punishment in rule 11 for contravention of rule 10. It is obvious that a Punjab purchasing dealer cannot be punished by the Madras Court for contravention of rule 10. These considerations leave no doubt in our minds that rule 10(1), in particular the provision therein requiring furnishing of separate C Form for each sale transaction, is intended to apply only to the purchasing dealers in the Madras State. It is obvious that the Madras State cannot legislate for the Punjab purc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Authority (who has to supply C Forms to the Punjab purchaser) may tell him that he would be supplied with C Forms, only as required by the Punjab rules, and he could not get an excess in number of C Forms solely to accommodate the requirements of selling dealers in other States. It is mentioned by learned counsel for the petitioner that the Madras rule providing for as many C Forms as there are sales is prescribed in all the other States except three States of which Punjab is one. We are unable to uphold the interpretation suggested by the Department of rule 10(1) as one which will apply to the registered purchasing dealers in the other States, who will be governed only by the rules framed in their own States. We asked the learned Government Pleader whether there are any special reasons for making it an essential requirement to supply as many C Forms as there are sales, in order to comply with section 3(4) of the Central Sales Tax Act. He is not able to point out any specific reason for requiring a separate C Form for each sale. What actually happens in a case where a purchasing dealer consolidates all his purchase in one form is that, instead of writing out all the particulars ..... X X X X Extracts X X X X X X X X Extracts X X X X
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