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TMI Blog1991 (7) TMI 326X X X X Extracts X X X X X X X X Extracts X X X X ..... ders, Kalpetta, during the year 1984-85, according to the assessee, are covered by the respective form 25 declarations produced by him before the assessing authority. The assessing authority was not satisfied with the genuineness of the transactions covered by form 25 declarations and therefore issued pre-assessment notice to the assessee calling upon him to submit his explanation as regards the objections (noted hereunder) raised therein. (a) Though Janatha Enterprises had the registration for the year 1983-84, it never had any transactions during that period and that it is so can be seen from the nil return filed by it. (b) During the year 1984-85 both Janatha Enterprises and Jyothi Traders, were not having the requisite registration. (c) Bhaskar Traders did not have any transaction in hill produce and therefore it must be held that Bhaskar Traders had not purchased any such goods from the assessee. 4.. The assessee filed his objections within the stipulated time. We shall now reproduce relevant portions from the said objections. The following pertains to the assessment proceedings for the year 1983-84: "We are ready to pay the tax on the local sales of pepper to Surag Trade ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 80, i.e., much more than the prescribed minimum turnover to be assessed as per the Kerala General Sales Tax Act. Moreover, the department has not cancelled the registration of the said party when they have issued form 25 declaration to us In the case of Janatha Enterprises, Tellicherry, also they are registered dealers. Their registration has not been cancelled by the department, when they had purchased goods from us. Since the purchases are for Rs. 11,24,879.13, i.e., much more than the prescribed minimum turnover, the said buyer will alone be liable to pay tax under section 5(2) of the Kerala General Sales Tax Act, and the department can assess tax from the said buyer alone................ " 5.. The assessing authority was not satisfied with the explanation and consequently treated the assessee as the last purchaser and included the purchase turnover of pepper, alleged to have been sold to the above traders, in his taxable turnover. The Deputy Commissioner before whom the assessee had filed the appeals against the above assessment orders, concurred with the assessing authority. The appeals, therefore, were dismissed. The Appellate Tribunal who went into the question as to whethe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... declarations." This clause provides that the dealer who wants to have a declaration that he is not liable to tax on the sale of such goods, taxable at the point of last purchase by reason of his not being the last purchaser in the State, shall obtain a declaration in form 25 from the person to whom he has sold the goods. The purchaser is bound to issue such a declaration to the seller. While submitting the said declaration in form 25, the dealer is bound to file a statement 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 of the said dealer covered by the form 25 declarations. This in short is the scheme of the sub-section. The insistence on the production of the details like the name and address of the dealers to whom he sold the goods, etc., by the assessee, in our view, clearly reflects the intention of the Legislature, namely, that form 25 declaration shall not be treated as providing conclusive proof of the genuineness of the transactions covered by it. It should in this connection be remembered that this provision is introduced to see that evasion of tax is avoided. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve power, for good and sufficient reasons, to cancel, modify or amend any registration certificate issued by it." The plain and unambiguous language employed in sub-section (5) makes it clear that the certificate issued under sub-section (2) will be valid only for an year and the said certificate will continue to be valid for subsequent years provided the same is renewed from year to year on payment of the fees specified in sub-section (1). It is such a certificate, whether originally issued or renewed from year to year which can be cancelled, modified or amended by the prescribed authority. To put it differently, it is not as if that a certificate issued once will continue to be in force for ever irrespective of the fact whether it is renewed in the manner indicated in sub-section (5) or not. The validity of a certificate comes to an end on the expiry of the one year period unless it be that it is renewed in the manner indicated in clause (16) of rule 5 of the Kerala General Sales Tax Rules. This rule provides that a registered dealer shall pay the fee for the renewal of the certificate specified in sub-rule (12) for every year subsequent to that in which he applied for registrat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of form 25 declaration given prior to the date of cancellation. It is unnecessary for us to go into this question in view of the decision of this Court in Deputy Commissioner of Sales Tax v. Debi Prasad Shyam Sunder & Sons [1991] 82 STC 305; (1991) 1 KLT 102. In the light of this decision the answer to the question shall be in favour of the assessee. 13.. The question as to whether Bhaskar Traders, Kalpetta, was having dealings in pepper at the relevant time, does not appear to have been considered by any of the authorities in the right perspective. The authorities have proceeded on the basis that Bhaskar Traders is dealing only in groceries and as such the case of the assessee that he had sold pepper to that trader cannot be accepted. Whether or not Bhaskar Traders was having dealings in pepper during the relevant period necessarily has to be considered provided of course, it is a registered dealer. This question also therefore requires to be considered afresh. 14.. The Tribunal in our view has not considered the questions in the right perspective. The order, therefore, is liable to be set aside. The entire matter therefore requires to be considered afresh. We, accordin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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