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TMI Blog1970 (4) TMI 146X X X X Extracts X X X X X X X X Extracts X X X X ..... the sales are made to a registered dealer outside the State and the unregistered dealer in U.P. procured 'C' forms from the purchasers, i.e. outside State dealers?" The assessee was a proprietary concern which carried on business in the name and style of M/s. Educational Supplying Co. Ltd., Bullanala, Varanasi, and was a registered dealer. Subsequently the business was taken over by a partnership concern which carried on the business in the same trade name. The partnership, however, did not get itself registered under the belief that the old registration certificate would enure to its benefit. In respect of the assessment year 1960-61 the assessee was assessed to a tax of Rs. 317.80 on a net turnover of Rs. 4,540 under the Central Sales T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provided: "The tax payable by any dealer on his turnover in so far as the turnover or any part thereof relates to the sale of goods in the course of inter-State trade or commerce not falling within sub-section (1)- (a)................... (b) in the case of goods other than declared goods shall be calculated at the rate of 7 per cent. or at the rate applicable to the sale or purchase of such goods inside the appropriate State, whichever is higher.........." Sub-section (3) provided: "The goods referred to in clause (b) of sub-section (1)- (a)..................... (b) are goods of the class or classes specified in the certificate of registration of the registered dealer purchasing the goods as being intended for resale by him ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is available only if the following conditions are satisfied: (i) that the sales are to a registered dealer, (ii) that the goods sold are such as are mentioned in sub-section (3) of section 8. Sub-section (3) of section 8 then enumerates the goods or class of goods which are specified in the certificate of registration of the registered dealer purchasing the goods and such goods are either intended for resale by him or meant for use by him in the manufacture or processing of the goods for sale, or are containers or packing materials for use by the registered purchasing dealer, and (iii) the purchasing dealer furnishes the requisite declaration in the prescribed form. The prescribed form is called form 'C'. There is no requirement that the se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ates that "if any person fails to get himself registered as required by section 7, he shall be punishable with simple imprisonment which may extend to six months, or with fine, or with both..." Section 10-A provides for imposition of penalty in lieu of prosecution. It is thus clear that the scheme of the Act is that every dealer who is liable to pay tax under the Central Sales Tax Act must get himself registered and even if a dealer is not liable under the Central Sales Tax Act he has been given an option to get himself registered, if he is a dealer liable to pay tax under the State law. On the failure of a dealer to get himself registered, two consequences follow: (a) he is not entitled to realise tax from the purchasers, and (b) he rend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nted out above, yet his non-registration in no way entitles the authorities to levy tax at a rate different from that provided in section 8. To reiterate what we have already stated above, the concessional rate is applicable where the goods are sold in the course of inter-State trade or commerce to a registered purchasing dealer and the goods are either declared goods or are of such description as are specified in the registration certificate of a purchasing dealer. After all the concessional rate is intended primarily for the benefit of the purchasers and the purchasers cannot be deprived of the concessional rate for the default committed by the selling dealer in getting himself registered. Reference in this connection may be made to the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods to a registered dealer against valid 'C' forms is liable to pay tax at the concessional rate and he would naturally add to the price the tax at that rate. If the purchasing dealer happens to be an unregistered dealer in that case, the tax payable would be at the higher rate of 7 per cent. If the selling dealer is a registered dealer, he may charge tax at that rate separately, but if he is not a registered dealer, he may add tax at that rate to the sale price. The Supreme Court in the case of State of Madras v. Radio and Electricals Ltd.(1) was not dealing with the question which is for consideration before us. There the question was as to whether a dealer who had sold goods against 'C' forms was under any liability to see that the goods ..... X X X X Extracts X X X X X X X X Extracts X X X X
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