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TMI Blog1985 (12) TMI 357X X X X Extracts X X X X X X X X Extracts X X X X ..... der the Act, he cannot claim that he is not the last purchaser and therefore not liable to sales tax in respect of the transactions in question. The stand taken by the appellant before the learned single Judge was that it is open to the appellant to prove that he is not the last purchaser by adducing other satisfactory evidence before the authorities even though he is required by sub-rule (14) of rule 32 to furnish the relevant information in regard to the transaction in question in the prescribed form No. 25. The learned single Judge has dismissed the writ petition holding that the provisions of subrule (14) of rule 32 are mandatory and, therefore, the appellant cannot be permitted to prove that he is not the last purchaser by adducing oth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted to the assessing authority on or before the twenty-fifth of the month succeeding that to which the sales relate along with a statement of such declarations showing the name and address of the dealers to whom the goods were sold with the particulars of sale bill, quantity, and value, and the total turnover covered by such declarations". The charging section as then in force is section 5 which provides that every dealer (other than a casual trader or agent of a non-resident dealer) whose total turnover for a year is not less than twenty-five thousand rupees and every casual trader or agent of a non-resident dealer, whatever be his total turnover for the year, shall pay tax on his taxable turnover for that year: (i) in the case of go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see should be saddled with tax liability only because declaration as contemplated by subrule (14) of rule 32 has not been furnished. If we analyse sub-rule (14) of rule 32 it becomes clear that every dealer who intends to take the stand that he is not the last purchaser and therefore not liable to tax is required to obtain a declaration in form No. 25 from the person to whom he has sold the goods. The person to whom the goods are sold has also been fastened with the liability of issuing such a declaration to the seller. There is a further obligation on the part of the dealer to obtain such a declaration and of submitting the same to the assessing authority on or before the twenty-fifth of the month succeeding that to which the sales relate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... factor to be taken into consideration for the purpose of considering this provision as directory. The principles for deciding as to whether a particular provision is mandatory or directory are well-settled. The object of the statutory provision must be taken into account, the mischief sought to be averted must be borne in mind and the inconvenience and hardship that will be caused by taking one or the other view should be taken into consideration. It is clear from the object of sub-rule (14) of rule 32 that the possible evasion of tax is what is sought to be averted. It is not easy and possible for any purchaser at that point of time to be certain that he would be the last purchaser. It is therefore very much in the interest of the dealer h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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