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TMI Blog1974 (5) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... over the Commercial Tax Officer rejected the claim made by the petitioner under section 5(2)(a)(ii) of the said Act on the basis of the declaration form supplied by the purchasers, the registered dealers. The petitioner claimed exemption of a total amount of Rs. 25,89,286.18, but the Commercial Tax Officer disallowed Rs. 1,72,905.62 with respect to sales to M/s. Laxmi Iron Steel Co., M/s. Bansal Iron Steel Engineering, and M/s. Krishna Commercial Engineering on the grounds that purchasing dealers' registration certificates were cancelled on 28th April, 1969, 9th November, 1970, 12th April, 1971, and 25th November, 1970, respectively. The Commercial Tax Officer was also of the opinion that no order from the purchasing dealer was produced ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1972. The petitioner claimed deduction for Rs. 12,97,029.29. The Commercial Tax Officer disallowed a sum of Rs. 3,25,671.56. The Commercial Tax Officer was of further opinion that the payment received was partly in cash and partly by cheque. In the declaration forms, number of challans and dates were not mentioned. No appeal was preferred against the said order of assessment. With respect to the assessment for four quarters ending 31st December, 1969, the petitioner duly filed returns. The petitioner apprehended that respondent No. 1 will reject the claim made by the petitioner under section 5(2)(a)(ii) of the Act and thereby a huge demand will be raised against the petitioner and, in that event, the petitioner will suffer substantial loss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at case it has been held by Banerjee, J., sitting with K.L. Roy, J., that the provisions of section 5(2)(a)(ii), proviso, read with rule 27A and the prescribed form should be treated as directory, which need be substantially complied with. It has also been further held that the subsequent cancellation of registration certificate does not invalidate the declaration form given in respect of a purchase prior to such cancellation. My attention was also drawn to the case of Durga Sree Stores v. Board of Revenue[1964] 15 S.T.C. 186., wherein it is held that where the certificate of registration is issued to a registered dealer it contemplates that the purpose of purchase might well be either the purpose of manufacture or resale or any of the al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led on 7th January, 1957, but the purchaser issued the supporting declaration form up to 23rd February, 1957. The declaration forms which were produced in respect of sales did not indicate the purpose for which the purchases were being made. At page 398 of the Reports, S.P. Mitra, J. (as he then was), observed that when declaration forms of this nature are issued by a dealer whose registration admittedly has been cancelled, the omission to mention the purposes of purchase cannot be treated lightly or considered negligible, particularly in the context of the transactions prior to cancellation which have already been considered by us. In these premises, the authorities, in our opinion, had justifiably refused to entertain the claim of deducti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urposes than one; and that when the purchasing dealer furnishes certificate in form C without any of the four alternatives, it is a representation that the goods purchased are intended to be used for all or any of the purposes and the certificate complies with the requirements of the Act and the Rules. Considering the decisions referred hereinabove, in my view, when a dealer claims exemption under section 5(2)(a)(ii) of the Act by filing declaration form in support of his claim, he has discharged his onus under rule 27A. The onus of proving genuineness of the transaction is shifted to the Commercial Tax Officer. There is no obligation on the part of the assessee and the law does not cast any responsibility upon the assessee to satisfy abo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act, means any transfer of property in goods for cash or deferred payment or other valuable consideration, including a transfer of property in goods involved in the execution of a contract, but does not include a mortgage, hypothecation, charge or pledge. Accordingly, sale can be made either by cash or deferred payment as provided in section 2(g) of the Act. Therefore, considering the facts and circumstances of the case, in my opinion, the impugned order of the Commercial Tax Officer dated 30th September, 1971, and the order of the Assistant Commissioner dated 28th October, 1972, for the period of four quarters ending 31st December, 1967, and order dated 16th November, 1972, passed by the Commercial Tax Officer for the period of four quar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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