9911796707
TMI Blog1974 (12) TMI 56X X X X Extracts X X X X X X X X Extracts X X X X ..... riods are different, the facts in these references, in all material particulars, are the same. Hence, the three references are being disposed of by us by a common judgment. The facts giving rise to these references are as follows: The applicant carried on the business of manufacturing edible oil. He used to purchase groundnuts from his commission agents. Although the applicant was a registered dealer, he did not hold a recognition certificate and the purchases effected by him were without the issue of declarations in form 15. His vendors were under the impression that the applicant would furnish declarations in form 15 and, as such, they charged tax at 1 per cent only instead of 2 per cent. It may be mentioned that the groundnuts are cove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the applicant was rejected by the Sales Tax Officer on the ground that he had failed to produce the proofs showing the payment of additional general sales tax at 1 per cent. The applicant preferred appeals before the Assistant Commissioner of Sales Tax, who confirmed the orders of the Sales Tax Officer and dismissed the said appeals. He went by way of second appeals before the Sales Tax Tribunal, who also dismissed the said appeals. The question, which has been referred to for our consideration, is as follows: "Whether the word 'recovered' appearing in rule 41-A(a) of the Bombay Sales Tax Rules, 1959, means 'actually recovered in cash' and whether debit entries in the regularly kept account books of the dealer's vendors could not be h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n dispute that although the said Sangh sent a debit note to the applicant for additional 1 per cent general sales tax, this amount has not been actually paid by the applicant either by way of cash payment or by adjustment against the existing liability of the said Sangh to the applicant. The submission of Mr. Surte, the learned counsel for the applicant, was that as the said Sangh had sent a debit note for the additional amount of 1 per cent general sales tax to the applicant, it must be deemed to have recovered this amount within the meaning of the said expression in rule 41-A(a) of the said Rules from the applicant, who was a manufacturing dealer, and hence the applicant was entitled to a set-off in respect of this amount. It was submit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in rule 41-A(a) of the said Rules means actually recovered, in the sense of actually paid in cash or paid by way of adjustment against an existing liability of the other registered dealers to whom the payment is to be made in favour of the manufacturing dealer making the payment. In our view, mere making of debit entries in the regularly kept account books of the dealer's vendors could not be said to result in the amounts of these debit entries being considered to be recovered from the dealer. As far as the question of costs is concerned, we would normally have awarded the costs of these references to the respondent on the principle that costs must follow the event. In the present case, however, after stating the facts and advancing some ..... X X X X Extracts X X X X X X X X Extracts X X X X
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