9911796707
TMI Blog1981 (9) TMI 259X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, suffices to examine the matter with relative brevity. 2.. The petitioner-assessee, who is a registered dealer, had purchased vegetable ghee to the tune of Rs. 1,85,020.20 from Messrs. Janta Sugar Company, Messrs. Hardit Singh and Messrs. Partap Fair Shop, all of whom were admittedly unregistered dealers. They, in turn, had purchased the vegetable ghee from the manufacturer who was a registered dealer. Sales tax at the first stage of the sale, namely, from the manufacturer to the unregistered dealers had been paid. The unregistered dealers who sold the goods to the assessee issued the certificates in form S.T. XXII-A showing that the sales tax had already been paid at the first stage of the sale. On the basis of these certificates, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in favour of the petitionerassessee. Bains, J., however, took the view that though the decision in Mulakh Raj Nand Lal's case [1974] 33 STC 42 was plainly applicable, yet he doubted the correctness of the same and proposed its reconsideration by a larger Bench. S.C. Mital, J., however, unreservedly agreed with the view in Mulakh Raj Nand Lal's case [1974] 33 STC 42 and, therefore, opined that no reconsideration thereof was necessary. In view of the difference of opinion, the matter was placed before O. Chinnappa Reddy, J., under clause 26 of the Letters Patent. In his detailed reference order he concurred with the opinion expressed by Bains, J., and therefore referred the case to the Full Bench to reconsider the ratio in Mulakh Raj Nand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on Bench in Mulakh Raj Nand Lal's case [1974] 33 STC 42, wherein, it was laid down as follows: "For interpreting the proviso, it is necessary to keep in mind the object of insistence on such a certificate. That object obviously is that before a person at the subsequent stage of sale can get exemption from payment of sales tax it must be clear that sales tax had been paid or had been undertaken to be paid by a person making the sale at the first stage and inasmuch as the State authorities have control only over the registered dealers, consequently, the certificate to the effect that somebody has paid or has undertaken to pay the sales tax at the first stage of the sale, must be by a registered dealer. Does the proviso mean that all subseque ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ased' occurring at the end of the proviso should be construed so as to prevent the assessee's sales being regarded as subsequent sales simply because his purchases were not from immediate registered dealer but were from two unregistered dealers who had purchased from the registered dealer. The words in that phrase are not 'registered dealer from whom he (the dealer effecting the subsequent sales) had purchased the goods'. The words as they are have been rightly construed by the Division Bench of the High Court to mean a registered dealer 'from whom the goods were (originally) purchased' or 'from whom the goods were purchased (at the first stage)'. Such construction is in consonance with the dominant intention of the legislature to impose a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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