9911796707
TMI Blog1975 (11) TMI 134X X X X Extracts X X X X X X X X Extracts X X X X ..... Blown Fold Drier resold by the applicants to M/s. Raymond Woollen Mills Ltd. for Rs. 1,99,324 on the ground that the sale of the said machine is a resale of goods purchased from a registered dealer under the provisions of section 8(ii) of the Bombay Sales Tax Act, 1959?" The facts which have given rise to this reference are that the applicants purchased a machine, namely, a Blown Fold Drier (complete with electric motor), from the New Kaiser-1-Hind Spinning and Weaving Company Limited on 29th November, 1961, and they sold the said machine to the Raymond Woollen Mills Limited on 17th February, 1962. The New Kaiser-1-Hind Spinning and Weaving Company Limited, the assessees, and the Raymond Woollen Mills Limited were all of them at all mate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purchase made by them from a registered dealer. The short question which falls for our determination, therefore, is whether a deduction under clause (ii) of section 8 of the said Act can only be claimed where the goods, which have been resold by a registered dealer to another registered dealer, have been purchased by him from a registered dealer who deals in this class of goods or whether such deduction is permissible even though the sale of goods to the registered dealer claiming deduction is a casual sale. In other words, the question is whether once a dealer is registered, his registration certificate operates in respect of all goods sold by him or only in respect of those goods in which he carries on business as a dealer. A dealer is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the dealer applies in the prescribed manner for cancellation of his registration, the prescribed authority shall cancel the registration with effect from such date as it may fix in accordance with the rules." The scheme of the said Act, therefore, is that what is to be taxed are sales and purchases made by a dealer in the course of his business of buying or selling goods, and not sales or purchases of any goods by a dealer even though he may not be carrying on business in that particular class of goods. A dealer is, therefore, registered in respect of a particular business of buying or selling goods, and not generally. This is made amply clear by sub-section (6) of section 22 of the said Act which talks of "any business, in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act and the Rules and the forms appended thereto leave no doubt that unless the goods which have been resold were purchased from a registered dealer who was dealing in that very class of goods, there could be no claim for deduction under clause (ii) of section 8 of the said Act. Where a registered dealer who has made the first sale was not dealing in this class of goods, the goods sold could not be said to be sold by a registered dealer, and such a sale must stand on the same footing as a sale by an unregistered dealer. For the above reasons, we answer the question referred to us in the affirmative. The applicants will pay to the respondents the costs of the reference fixed at Rs. 250. Reference answered in the affirmative. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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