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TMI Blog2004 (11) TMI 560X X X X Extracts X X X X X X X X Extracts X X X X ..... ty certificate, dal manufactured by the dealer was exempted from tax. Dealer however, issued form III-C(2) and form III-C(5) to the purchasers of dal. Assessing authority initiated proceeding under section 3B on the ground that form III-C(2) and form IIIC(5) were wrongly issued and on account of issuance of such forms, tax ceases to be leviable in the hands of purchasers and accordingly passed an order under section 3B and demanded tax which ceases to be leviable on account of issuance of forms III-C(2) and form III-C(5). First appeals filed by the dealer were rejected. Dealer filed second appeals before the Tribunal which have been allowed and the order passed under section 3B have been set aside. Heard counsel for the parties. Learned S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons about the issuance of forms were also given to the assessing authority time to time. Having heard learned counsel for the parties I have perused the order of Tribunal and the authorities below. Section 3B reads as follows: "Section 3B. Liability on issuing false certificates, etc.--Notwithstanding anything to the contrary contained elsewhere in this Act and without prejudice to the provisions of sections 14 and 15A, a (person) who issues a false or wrong certificate or declaration, prescribed under any provision of this Act or the Rules framed thereunder, to another (person) by reason of which a tax leviable under this Act on the transaction of purchase or sale (made with or by) such other (person) ceases to be leviable or becom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dealer on whose behalf the said goods were purchased; (d) Form III-C(4) shall be issued by the dealer, who sells the goods in the capacity of a selling agent, to the dealer on whose behalf the said goods are sold; (e) Form III-C(5) shall be issued,-- (i) by the dealer, who had purchased the goods as a purchaser other than the first purchaser, to his selling agent or to the dealer to whom such goods are sent for sale or, as the case may be, are sold; or (ii) by the manufacturer of goods on which Central excise duty, both basic and additional, was leviable and has been paid, to his selling agent or the dealer to whom such goods are sent for sale or, as the case may be, are sold, or (iii) by any purchaser within Uttar Pradesh of goods r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he dealers referred to in sub-rule (7)(e) of rule 12B]). Signature of the Issuing Officer . . . . . . . . . . . Seal of the issuing office. . . . . . . . . . . . . . . . . . Date of issue. . . . . . . . . . . . . . . . . . . . . . . . . . . . Name and address of the dealer to whom issued. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Number of registration certificate. . . . . . . . . Date from which it is effective. . . . . . . . . . . . I . . . . . . . . . . (1)Proprietor/partner/Karta of Hindu undivided family/Director/person duly authorised under rule 77-A by M/s. . . . . . . . . (name and full address) do hereby certify that our said firm is registered under section 8A of the U.P. Sales Tax Act and its Registration No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rchased by us and we have received (1)form III-C(2)/III-C(5) No. . . . . . . . . . . . . . . dated. . . . . . . . . . . . . in respect thereof. Place. . . . . . . . Date. . . . . . . . Signature (1)Proprietor/Partner/Karta/Director /Person duly authorised under Rule 77A. In form III-C(2) party who issues such form gives declaration that it's firm is the first purchaser and accepts liability to pay purchase tax. In form III-C(5) declaration is made that he has received form III-C(2)/III-C(5) from its principal or received form III-C(2) and III-C(5) from whom he has made purchases. In the present case being eligibility certificate holder under section 4A, dal was exempted from tax and therefore, there was no liability of tax on dal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iable at a concessional rate. Therefore, the seizure of liability is not contemplated with reference to the buyer or the dealer but is with reference to the transaction. The transaction in question were of a sale and purchase. A sale by the revisionist is purchase by the other side and, therefore, there was a transaction of sale on the one side and purchase on the other the purchase was liable to tax and because of the declaration the purchase ceased to be taxable in the hands of the purchaser. The declarations were patently wrong because the dealer revisionist was a manufacturer and not a purchaser, therefore, the dealer to whom the goods were sold could not be a subsequent purchaser and form III-C(2) could not be issued in terms of rule 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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