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TMI Blog1974 (11) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... ct on the ground that cement was sold against the certificates issued by the Executive Engineers of the Punjab State Electricity Board to the effect that it was required for use in the generation and distribution of electrical energy. The Assessing Authority allowed the deductions while making assessment orders. The Deputy Excise and Taxation Commissioner (Appeals), Rohtak, exercising the powers of the Commissioner, started suo motu proceedings under section 21 of the Act, and, after hearing the petitioner, disallowed the deductions to the tune of Rs. 1 lakh for the year 1964-65 and Rs. 2 lakhs for the year 1965-66 on the ground that a part of the cement was used for the construction of office building, residential bungalows and other staff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y period which remains after deducting therefrom- (a)............................................................................ (iv) sales to any undertaking supplying electrical energy to the public under a licence or sanction granted or deemed to have been granted under the Indian Electricity Act, 1910 [9 of 1910], of goods for use by it in the generation or distribution of such energy..........." The requirements of the clause are: (a) that the sales must have been made to an undertaking supplying electrical energy to the public; (b) the undertaking must hold a licence or sanction under the Indian Electricity Act, 1910; and (c) the goods must be sold to the undertaking for use by it in the generation or distribution of su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 956, and the Rules framed thereunder. It was pointed out by the Supreme Court that the scheme of the Central Sales Tax (Registration and Turnover) Rules, 1957, read with the Central Sales Tax Act, 1956, showed that the purchasing dealer as well as the selling dealer must register themselves under the Central Sales Tax Act. If declared goods are specified in the certificate of registration of the purchasing dealer and if it be certified that the goods are intended for resale by him, the sale is subject to concessional rate of tax under section 8(1). The Act and the Rules do not impose an obligation upon the purchasing dealer to declare that the goods purchased by him are intended to be used for one purpose only, even though under his certifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... If he is satisfied on these two matters, on a representation made to him in the manner prescribed by the Rules and the representation is recorded in the certificate in form C, the selling dealer is under no further obligation to see to the application of the goods for the purpose for which it was represented that the goods were intended to be used. Whether the goods specified in the registration certificate in form B can be used for the purpose is not for the selling dealer to determine. These observations can be applied mutatis mutandis to the case before us. Once the responsible officers of the Punjab State Electricity Board issued the necessary certificates, the petitioner-company, as seller of cement, was under no obligation to see tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te. It was further pointed out that there were three conditions involved before exemption could be claimed: the first was that the goods must be for the use of the dealer, the second was that they must be for manufacture in the State of Punjab and the third was that the manufacture must result in goods for sale. The exemption could only be claimed if the company satisfied all the three conditions. The last condition did not appear to be fulfilled in that case. The same cannot be said of the case of the petitionercompany. All that the petitioner-company was required to see was that the Punjab State Electricity Board purchased cement for use in the generation and distribution of electrical energy and on the certificates being issued by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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