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TMI Blog1992 (2) TMI 326X X X X Extracts X X X X X X X X Extracts X X X X ..... mar and M/s. Sunrise Lubricants. In the case of the former there were nine sales totalling Rs. 1,00,200 while the sale in favour of the latter concern was of Rs. 23,000. The dealer had obtained declarations from these purchasers and sought the benefit of exemption from sales tax in his return. The assessing authority, however, found that the registration certificate of M/s. Narender Kumar Krishan Kumar had been cancelled with effect from 1st April, 1973, while the registration certificate of M/s. Sunrise Lubricants had been cancelled with effect from 15th October, 1973. The assessing authority came to the conclusion that the dealer was not entitled to the benefit of the sales made to the said purchasers because their registration certific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aving been filed, the Tribunal has now referred the aforesaid question to this Court. From the facts enumerated above it is clear that the factum of the cancellation of registration certificates of the two purchasers was notified only after the assessment year was over and the sales had been made. As on the date when sales were effected by the dealer, in the present case, the cancellation of registration certificates had not been notified. The dealer, therefore, could not possibly have any knowledge about the cancellation. The dealer acted in good faith and obtained the declarations before making the sales. According to rule 12 of the Delhi Sales Tax Rules, 1951, when the registration certificate is cancelled the order of cancellation s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ains a declaration certificate and it is not known to him that the registration certificate of the purchaser had been cancelled and that cancellation is not notified in the official gazette then the selling dealer is entitled to the benefit under the Act. He cannot be penalised for the inaction of the department in non-publication or late publication in the official gazette. The selling dealer, in the present case, has acted in good faith and as far as he is concerned he had obtained valid declaration certificates at the time of making the sales. The Tribunal was, therefore, right in coming to the conclusion that the benefit claimed by the dealer could not be denied to him. For the aforesaid reasons the question of law referred to this Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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