1967 (6) TMI 38

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..... rations in "C" Forms. The assessee claimed exemption of the entire turnover from tax under section 6(2) of the Central Sales Tax Act and had duly filed the "E-I" Forms. The Tribunal accepted the assessee's contention that sub-rules (2) and (5) of rule 9-B of the Central Sales Tax (Madras) Rules, 1957, are in excess of the rule-making power of the State Government and allowed the appeal. The State .....

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..... 1957, prescribe that the certificate for purposes of section 6(2) should be in Form "E-I". There is no dispute that the assessee did file "E-I" Forms in respect of the turnover in dispute. But the revenue insisted upon the assessee producing declarations in Form "C", which the assessee resisted and declined. Apparently, the revenue relied on rule 9-B(2) and (5) of the Madras Rules. Sub-rules (2) a .....

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..... s we mentioned, was of the opinion and, we think, quite rightly, that sub-rule (5) is not within the rule-making power of the State Government. The proviso only requires that the dealer, in order to qualify himself to the exemption under sub-section (2) of section 6, should produce a certificate in the prescribed form relating to the turnover in respect of which exemption is claimed. The proviso d .....

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..... purchased, are produced. Nowhere is any indication to be found in sub-section (2) or the proviso thereto, that "C" Form as such should be obtained and produced. Nor do we find in section 13(4) any authority for the State Government 'to frame a rule, like sub-rule (5) of rule 9-B. The Tribunal was, therefore, right in its view that subrule (5) of rule 9-B is invalid. As for sub-rule (2) of that r .....

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..... "C". While, therefore, we do not think that sub-rule (2) is invalid, the sub-rule understood as being merely directory, we make it clear that the revenue cannot rely on non-production of declara. tions in Form "C" and merely on that ground deny exemption to the dealer to which he is entitled by section 6(2). The petition fails and is dismissed with costs. Counsel's fee Rs. 100. Petition dism .....

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