9911796707
TMI Blog1989 (5) TMI 301X X X X Extracts X X X X X X X X Extracts X X X X ..... the dealer and as such the gross turnover as returned by the dealer was taken for the purposes of assessment". The dealer claimed deductions to the tune of Rs. 49,36,670.38 under section 5(2)(a)(ii) of the Punjab General Sales Tax Act, 1948 on account of sales having been made to registered dealer. This claim was accepted except in relation to four transactions of sales of cotton seeds worth Rs. 1,03,042.50 to M/s. Malikpuria Oil Mill, Kaithal, Rs. 8,01,676.46 to M/s. Puran Chand Sarwan Kumar, Kaithal, Rs. 87,436.88 to M/s. Bal Raj Rameshar Dass, Kaithal, and Rs. 9,479.10 to M/s. New Jagadhari Oil Mill. Regarding this, it was observed that the purchasers are registered dealers but they are manufacturers of oil. The cotton seeds sold to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing dealers before levying tax. Still dissatisfied, the dealer took an appeal before the Sales Tax Commissioner, Haryana. This appeal was allowed. It was contended by the dealer before the learned Tribunal that the dealer while selling cotton seeds was enjoined by law only to satisfy himself that the sales were being made to registered dealer and that the purchasing dealer had furnished valid and genuine declaration in form S.T. XXII incorporating thereunder that the goods purchased were for resale. It was not for the selling dealer to question the correctness of the statement made in the declaration. If the purchasing dealer makes a wrong statement in his declaration under form S.T. XXII while purchasing goods which are exigible to sales t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ities may take such action as they deem fit against the purchasing dealers for the recovery of the tax. On an application moved by the State through the Excise and Taxation Commissioner, Haryana, Chandigarh, under section 42 of the Haryana General Sales Tax Act, 1973 ("the Act" for short), the Tribunal framed the following question and submitted it for our opinion: "Whether on the facts and circumstances of the case, in light of Schedule D read with clause (iii) of second proviso to section 5(1) of the Punjab General Sales Tax Act, 1948, specifying the levy of tax in the case of cotton seeds at the stage of last sale, the respondent-firm is entitled to deduct sales of such cotton seeds to crushing units on their furnishing declarations? ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sood, in the presence of proviso (iii) ibid, the selling dealer in the present case was entitled to deduct the sales of cotton seeds to registered dealers on the strength of their declaration in form S.T. XXII declaring that the oil-seeds had been purchased for resale. Even if the purchasing dealers were registered dealers and they had purchased taxable goods by furnishing declarations in form S.T. XXII that the goods had been purchased for resale, the Assessing Authority could go into the matter and investigate the financial position, capacity to make purchases, nature and extent of business and subsequent disposal of the goods by the registered dealers. We are afraid that this approach of Mr. Sood to the question posed for our opinion is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ., Lucknow [1986] 62 STC 112, observed: "that when the appellant, a registered dealer, had been granted exemption in the original assessment in regard to sales to registered dealers who had furnished the requisite certificate in form III-A that the goods were intended for resale in the same condition, the assessing authority had no jurisdiction to reopen the assessment on the basis that he had received information that the purchasing dealer had consumed the goods, especially as the appellate authority had held that there was no collusion on the part of the appellant, the selling dealer." We are of the considered view that on the facts and in the circumstances of the case, the dealer was entitled to deduct the sales of cotton seeds to re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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