9911796707
TMI Blog1984 (2) TMI 305X X X X Extracts X X X X X X X X Extracts X X X X ..... dispute in the present case about the facts of the case, i.e., we are not concerned with the quantification of the interest, but with the validity of the provision. It will be convenient here to refer to section 21 which states that tax has to be paid in the manner prescribed and sub-section (2) provides that every registered dealer and every other dealer who is furnished a notice to file a return of turnover, have to file their returns. It is then that sub-section (3) comes into operation and this provision may conveniently be reproduced. It states: "Every registered dealer required to furnish returns under sub-section (2) shall pay into a Government treasury or the Reserve Bank of India or in such other manner as may be prescribed, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vires because it extends only to registered dealers and does not apply to other dealers. For this purpose, it is again convenient to set out section 21(2) which reads: "Every registered dealer and every other dealer who may be required so to do by the Commissioner by notice served in the prescribed manner shall furnish such returns of turnover by such dates and to such authority as may be prescribed." It is contended before us that sub-section (2) equates registered dealers with other dealers who may be required by the Commissioner to file returns. These two sets of persons have to file returns. However, sub-section (3) states that the tax, or rather what may be conveniently called advance tax, is to be paid only by registered dealers a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der section 21(2) for the registered dealer to file the return and he has then to pay tax according to that return. This is provided by sub-section (3). On the other hand, the unregistered dealer has to buy goods from other dealers after payment of sales tax and he is not obliged to pay that sales tax to the State. He is not a collector of the sales tax in any sense but, for the purpose of ascertaining his turnover, a return is necessary in some cases. This is the reason why section 21(2) enables the Commissioner to get a return from other dealers also. The question of their taxability is quite a different matter from the taxability of a registered dealer. There is, therefore, a clear distinction between the two sets of persons which illu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dealers. The application of the Sales Tax Act being one which is attracted to most sales of commodities creates problems in the matter of realisations. That is why, dealers with a fairly large turnover are treated as registered dealers, whereas other dealers are treated as unregistered dealers. The enormous number of daily transactions in commodities and other articles which are sold and bought require that the number of dealers to whom the Act applies should be limited, otherwise, it will be almost impossible to administer the Act. There is, therefore, a reason for the classification between a registered dealer and an unregistered dealer. The necessity in practice for the existence of registered dealers and other dealers make it also ne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the petitioner relied on the Supreme Court's judgment in Anandji Haridas and Co. (P.) Ltd. v. S.P. Kushare, Sales Tax Officer, Nagpur [1968] 21 STC 326 (SC), wherein a particular provision of the C.P. and Berar Sales Tax Act, 1947, was found to be ultra vires. In that case, the court found that section 11(4)(a) and section 11A(1) equally applied to the appellant, and the court also found that the limitation period applicable to these two sections was different. Inasmuch as one of them was different from the other, it was found that article 14 of the Constitution was infringed and section 11(4)(a) being discriminatory was struck down. It was also observed in this judgment that the classification made between registered and unregistered de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applied to the same assessee in the same circumstances. The learned counsel for the department relied on Subheg Singh Gurbachan Singh v. Sales Tax Commissioner [1976] 37 STC 491 wherein there is some discussion regarding the difference between registered and unregistered dealers, and also, a discussion whether they could be separately and distinctly dealt with without infringing article 14 of the Constitution. The court stated at page 60 as follows: "Alternatively, he contended that even if it is held that the sale by an unregistered dealer is not liable to tax, while the sale by a registered dealer is liable to tax, the doctrine of discrimination would not be attracted as the unregistered dealer and the registered are not similarly sit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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