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TMI Blog2002 (7) TMI 769X X X X Extracts X X X X X X X X Extracts X X X X ..... tanding of the Act is that a registered dealer has been conferred with a vested right to buy or sell goods without any liability of tax on the goods specified in his registration certificate, on the issuance of prescribed declaration forms. Conversely, it is also contended that a registered dealer selling to another registered dealer can claim deduction from his taxable turnover on production of such forms. We may at once observe that the arguments are tenable so long as it is understood and accepted that it is essential and pivotal that the declaration forms must be available for each transaction. In conclusion, the contention is that even if a party is in arrears of tax, forms must nonetheless be issued to him. 2.. We have already prono ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dgment on November 30, 1998 in the Shri Krishna Engineering case [2003] 131 STC 321 (Delhi); (1998-99) 38 DSTCJ 100, an amendment was carried out to section 71(2)(b) by the Delhi Sales Tax (Second Amendment) Act, 2000 (Delhi Act No. 1 of 2000) which received the assent of the President of India on February 14, 2001, and it now reads as follows: "the particulars to be contained in a declaration under subclause (v), of clause (a) of sub-section (2) of section 4, or under section 5, as the case may be, the form of such declaration, the authority from whom and the manner and conditions subject to which such forms shall be obtainable and the manner in which and the time within which such declaration is to be furnished." 4.. On this amendme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rule causes an unreasonable restriction on the petitioner's fundamental right to trade and hence is violative of article 19(1)(g) of the Constitution; and (c) the amended rule having not been laid on the floor of Parliament as provided by section 72 of the Act, has ceased to be enforceable. The division Bench considered it necessary to decide the writ petition only on ground (a). It declined to record any opinion on grounds (b) and (c). The sales tax department has contended that since the lacuna detected by the division Bench in Shri Krishna Engineering case (C.W.P. No. 3304 of 1997) [2003] 131 STC 321 (Delhi) has now been plugged by Delhi Act No. 1 of 2001, the obstacle to the legal legitimacy of the provisions before the court has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ries v. Commissioner of Sales Tax [2003] 131 STC 372 (Delhi)], we find no merit whatsoever in the challenge made by the petitioners to the legality of the said rule. The purpose of the Act is to collect the tax. Under the Act taxes can be imposed at more than one stage although the effort is that sales tax should be collected from the consumer and on one occasion only. In order to achieve the latter objective, the issuance of declaration forms had been devised. It is wholly untenable that a dealer retains the right for the issuance of these forms despite the fact that it is in arrears of payment of tax. That would defeat the objective of the Act itself. We are unable to appreciate how payment of tax can conceivably be seen as restrictio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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