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TMI Blog1973 (10) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... ied therein. "Turnover", according to clause (i) of section 2 of the Act, includes the aggregate of the amount of sales..................actually made by any dealer..................Certain sales are exempt and, therefore, taxable turnover is that aggregate of the amounts of sales, etc., on which tax is levied. Sub-section (1-A) of section 5 was inserted by Punjab Act 28 of 1965 and runs as under: "The State Government may by notification direct that in respect of such goods other than declared goods and with effect from such date as may be specified in the notification tax under sub-section (1) shall be levied at the first stage of sale thereof; and on the issue of such notification the tax on such goods shall be levied accordingly: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the State of Punjab." Now, in the present case, the item in dispute is vegetable ghee which is covered by the notification and, consequently, on the sale of vegetable ghee sales tax is to be levied, in accordance with the notification, at the first stage of the sale. In this case, admittedly, the first stage of the sale was at the time when the manufacturer, i.e., the Amritsar Sugar Mills Company Limited, Amritsar, sold the goods to Messrs. Rallia Ram Gurbax Rai, a firm of Tarn Taran, and Messrs. Krishan Lal Brij Mohan, a firm of Amritsar, both of whom were unregistered dealers. These firms hereinafter will be referred to as the "unregistered firms". Now, these unregistered firms, in turn, sold the same vegetable ghee which they had purc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he unregistered firms) furnishes to the Assessing Authority in the prescribed form and manner "a certificate duly filled in and signed by the registered dealer from whom the goods were purchased". The registered dealer in this case would have to be the manufacturer and there is no dispute that the manufacturer is a registered dealer. The manufacturer would, therefore, give a certificate to the unregistered firms that he will be liable to pay the sales tax. Now the form of the certificate is given in form S.T. XXII-A, which is to the following effect: "1. I/We....................................holder of Registration Certificate No..................dealer in...............have sold..................(quantity) for Rs..................to.... ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irst seller, i. e., the manufacturer, has undertaken to pay the sales tax. The position taken by the department is that, under the proviso to sub-section (1-A) of section 5 of the Act, the assessee will not be exempted from payment of sales tax, because he cannot produce the certificate in form S. T. XXII-A that he had purchased the goods which had suffered tax at the hands of the manufacturer, who is a registered dealer, as is required by the second part of paragraph 2 of the form. The first part of the form would not be applicable to the unregistered firms. This view has been accepted by the learned single judge and the present appeal has been filed challenging that order. The main argument of the learned counsel for the assessee-appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e sales tax at the first stage is ensured, the object of the legislation is satisfied. If we hold otherwise, that would run counter to the very object with which sub-section (1-A) of section 5 and the notification were issued, namely, that important goods should not be levied sales tax at more than one stage. Taking all these things into consideration, we are of the view that the words "registered dealer" when used at the end of the proviso mean a registered dealer "from whom the goods were (originally) purchased" or "from whom the goods were purchased (at the first stage)". The word "originally" or the words "at the first stage" can be read into the proviso for clarification of the meaning of the same. It is now well-settled that such word ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... registered firm is meant to connect the first certificate with the sale made by them. The mere fact that in form S.T. XXII-A there is a column indicating that the person certifying has to give his certificate number, would not show that the second certificate must necessarily be by a registered dealer. It has also to be kept in mind that there can be no particular reason why, if the first sale or some intervening sale is in favour of an unregistered dealer, who, for example, is a person whose outturn is such that no registration under the Act is necessary, the notified goods should be subject to payment of sales tax over and over again contrary to the declared policy of the Legislature. As already discussed, the idea of this certificate, as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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