9911796707
TMI Blog1968 (6) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... ven rise to this reference are as under: The opponent-firm is holding a registration certificate. It purchased timber in the course of inter-State trade or commerce and furnished to its vendor a declaration in Form C declaring that the goods purchased by it were covered by its certificate of registration and were of a class or classes specified in the certificate of registration as being intended for resale or for use by it in the manufacture or processing of goods for sale. The vendor of the opponent-firm had in its turn furnished certificate in Form E-I. These certificates were produced by the opponent-firm before the Sales Tax Officer during the assessment proceedings for the period from Kartik Sud 1, 2015, to 31st December, 1959. The op ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter-State trade or commerce during any year on and from that date. Clause (2) then provides as under: "Notwithstanding anything contained in sub-section (1), where a sale in the course of inter-State trade or commerce of goods of the description referred to in sub-section (3) of section 8 (a) has occasioned the movement of such goods from one State to another; or (b) has been effected by a transfer of documents of title to such goods during their movement from one State to another; any subsequent sale to a registered dealer during such movement effected by a transfer of documents of title to such goods shall not be subject to tax under this Act: Provided that no such subsequent sale shall be exempt from tax under this sub-section u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Sales Tax (Registration and Turnover) Rules, 1967, rule 12 reads as under: "(1) The declaration and the certificate referred to in sub-section (4) of section 8 shall be in Forms C and D respectively. (2) The certificate referred to in sub-section (2) of section 6 shall be in Form E-I or Form E-II, as the case may be." The relevant Form C is, therefore, prescribed under rule 12(1) and it must be produced only when the exemption is claimed under section 8 (1). On the other hand, where the exemption is claimed under section 6(2), the relevant form is prescribed under rule 12(2) and it is in Form E-I, so far as the present case is concerned. From the aforesaid scheme of the Act, it is absolutely clear that section 6 is the chargi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roviso in section 6(2), the certificate in Form E-I only has to be furnished. Section 6 is the charging section which provides a complete exemption on production of the relevant certificate E-I, while section 8(1) provides a limited exemption by providing taxation at. a reduced rate, when the declaration in Form C is submitted. The two sections are totally different in their ambit and scope and the departmental authorities had mixed up the requirements of these two sections, when they insisted that even for claiming complete exemption under section 6(2) a certificate in Form C was necessary to be produced from the purchaser to whom the subsequent sale was made. In the case of a subsequent sale there would be a complete exemption when the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spute before the authorities on this question that the goods were "such goods" within the meaning of section 8(3) and since this contention has been sought to be raised for the first time in this reference, it cannot be permitted and on that contention no opinion can be expressed by us. Mr. Mody in this connection also rightly relied upon the decision of the Madras High Court in State of Madras v. P. Subbiah Pillai[1967] 20 S.T.C. 263. by the Division Bench, consisting of Veeraswami and Ramaprasada Rao, JJ. It was held that in order to get exemption under section 6(2) in respect of second inter-State sales to a registered dealer by transfer of documents of title during movement of goods, the only condition required by the proviso to secti ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
