1986 (8) TMI 420

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..... en found at the time of survey. Having failed in first appeal the assessee went up in second appeal before the Tribunal which too met the same fate. I have heard Sri K.M.L. Hajela, learned counsel for the assessee, and the learned Chief Standing Counsel appearing for the Revenue. Mr. Hajela urged that since the assessee was holding recognition certificate under section 4-B of the Act, no tax could be levied on the turnover of purchase of paddy and the authorities committed an error in ignoring the recognition certification. The learned Chief Standing Counsel appearing for the Revenue on the contrary submitted that since the assessee did not fulfil the conditions prescribed under section 4-B of the Act it was not entitled to the benefit of .....

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..... fulfil the conditions prescribed under section 4-B, it was not entitled to the benefit of the aforesaid notification dated 31st August, 1977, and in support of his contention he invited my attention to the provisions of section 3-13 of the Act and contended that since the assessee issued a false declaration the authorities were justified in levying tax on the assessee. In my opinion the provisions of section 3-B cannot be attracted in the instant case. The significant words used in section 3-B are "who issues a false or wrong certificate or declaration, prescribed under any provisions of this Act or the Rules framed thereunder, to another person by reason of which a tax leviable under this Act on the transaction of purchase or sale ceases t .....

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..... er section 4-B, commits a breach of the conditions of the recognition certificate, the consequences would be provided under the relevant provisions of the law and the said breach cannot disentitle the assessee from taking the benefit of section 4-B(1)(a) of the Act in assessment proceedings. I find myself in full agreement with the aforesaid decision of this Court. No other point has been pressed for consideration. In the result the revision succeeds and is allowed. The order passed by the Tribunal is set aside and it is directed to pass orders in accordance with the provisions of section 11(8) of the Act. However, there will be no order as to costs. Let a copy of this order be sent to the Tribunal concerned. Petition allowed.
Case .....

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