9911796707
TMI Blog2009 (1) TMI 802X X X X Extracts X X X X X X X X Extracts X X X X ..... sales made to seven registered dealers by tendering ST-XXII form because the authenticity of these documents has been doubted. The dealer was confronted with the signatures of one Shri Rakesh Singla on the ST-I form which Shri Rakesh Singla had filed at the time of registration of his firm, namely, M/s. Rakesh Enterprises, Ludhiana. The signatures on the registration certificate did not tally with the ST-XXII declaration form submitted by the dealer. We are further of the view that the requirement of subjecting seven purchasing dealers to cross-examination would pale into insignificance on account of clinching facts. In such circumstances, the question No. 1 posed has to be answered against the dealer and in favour of the Revenue. As a s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion from tax on sales made to the seven registered dealers under section 5(2)(a)(ii) of the Punjab General Sales Tax Act, 1948 (for brevity, the Act ). It is pertinent to mention that under section 5(2)(a)(ii) of the Act sales to a registered dealer of goods qualify to be deducted from the taxable turnover . The Assessing Authority had also imposed penalty of Rs. 1,50,000 under section 10(7) of the Act. The dealer preferred an appeal before the Deputy Excise and Taxation Commissioner (A), Patiala Division who vide order dated August 5, 1985, remanded the case back to the Assessing Authority with a direction to grant the dealer a proper opportunity of hearing. During the reassessment proceedings the seven registered purchasing dealers to w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he eventually appeared through his counsel Shri M.L. Arora. He was supplied with a photocopy of the affidavit dated September 29, 1983 filed by Shri Rakesh Singla, partner of M/s. Rakesh Enterprises, Ludhiana and was confronted with the same fact. Consequently, the Assessing Authority on the basis of the aforementioned facts once again affirmed the original assessment and reassessed the case accordingly. The Assessing Authority also affirmed the penalty under section 10(7) of the Act. On appeal before the Deputy Excise and Taxation Commissioner, Patiala Division, Patiala, the findings of the assessing officer were affirmed. However, the amount of penalty was reduced to Rs. 1,10,000. The dealer further filed an appeal under sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant is distinguishable and this case stands on different footing. The fact stands established that the appellant tried to cover these false transactions by procuring invalid forms in connivance with the alleged buyers and actually no property in goods passed between the appellant and the alleged buyers. As such, claim of the appellant under section 5(2)(a)(ii) was rightly disallowed in respect of all the seven dealers/ buyers. In the present case the dealer has connived with certain brokers of yarn trade to hoodwink the Revenue. With the intention to evade tax revenue he has filed incorrect returns by making bogus claim under section 5(2)(a)(ii). In the circumstances the penalty under section 10(7) of the Punjab General Sal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs against ST-XXII form. Ms. Sudeepti Sharma, learned State counsel, has however argued that the aforesaid question of law proceeds on the assumption that there was genuine acceptable sale by the dealer to the registered purchaser. She has maintained that in view of the categorical findings recorded by the Tribunal doubting the transaction, it is not possible to grant any benefit of the provisions of section 5(2)(a)(ii) of the Act against ST-XXII form. She has maintained that the Tribunal has categorically held that a dealer can avail of benefit of deduction against some genuine declaration issued by a genuine registered buyer for the transaction actually having been taken place. She has not disputed the proposition of law as laid down b ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
