9911796707
TMI Blog2009 (10) TMI 874X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Commercial Tax Act in case No. AG/Audit/03/04 for the period between 2000-01. The revisional order dated February 8, 2006 (annexure P6) passed in Revision Case No. 20/State/2006 for the period between April 1, 2000 to March 31, 2001 passed by the Deputy Divisional Commissioner, Commercial Tax, Satna and has also challenged the coercive recovery proceedings under the M.P. Land Revenue Code, 1959 commenced under notice dated March 23, 2006 (annexure P7) issued by the Assistant Commercial Tax Officer, Ward B, Rewa and Additional Tahsildar, Rewa. Short facts necessary for the disposal of the present writ petition are that the petitioner is carrying on the business of supply of transformers and spare parts, etc., and he also undertook re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Board were also produced along with circular issued by the Commissioner. The assessing officer however rejected the contentions raised by the petitioner. Therefore, he preferred a revision petition. The revision petition was dismissed with the observation that as the spares are not included in entry No. 35 of Part 4 of the Schedule II appended to the Commercial Tax Act, the petitioner was obliged to pay tax at eight per cent and the surcharge. The petitioner being aggrieved by the said orders passed by the assessing authority and the revisional authority, is before this court. The learned counsel for the petitioner, after taking us through the provisions contained in rule 67 of the Rules framed under the Madhya Pradesh Commercial Tax Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able by a dealer under this Act shall be levied on the taxable turnover relating to goods specified in Schedule II at the rate mentioned in corresponding entry in column (3) of the said Schedule. (2) Subject to such restrictions and conditions as may be prescribed and to the provisions of sub-clause (iii) of clause (w) of section 2,- (a) the tax payable by a registered dealer on the sale of any goods specified in Second Schedule except the goods specified in Schedule III, to another registered dealer for use by him inside the State,- (i) as raw material or as incidental goods, in the manufacture or in processing of goods or in the mining of goods, declared tax-free under section 15 or exempted in whole under section 17 and sold by him- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s are sold for generation or distribution of electrical energy or any other form of power then the tax has to be levied at the concessional rate of four per cent. Undisputedly, the transformers are used for purposes of distribution of electrical energy. The question for consideration is that whether the spare parts used for repair of the transformers can be considered as the raw material or the incidental goods. Once the purchasing dealer issues a certificate clearly saying or declaring that the goods purchased are for consumption or use as raw material/incidental goods by him and that the said goods are specified as raw material/incidental goods in his registration certificate then the certificate in form No. 32 would become absolutely fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , we have no hesitation in holding that the assessing authority had no jurisdiction to hold that the goods so sold by the selling dealer to the purchasing dealer would not come in the definition of raw material or incidental goods. Once the purchasing dealer declares that the goods have been purchased by him for consumption or use as raw material or as incidental goods then the matter becomes final for the selling dealer. Section 21 of the Act provides the liability of a dealer who is purchasing the exempted goods. If it is found by the authorities that the purchasing dealer has not used the goods for the specified purpose or within the specified time or he does not dispose of the goods in the specified manner or within the specified time ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he liability/responsibility is upon the purchasing dealer to issue such certificate in accordance with the provisions of the Act, Rules or notification. The law nowhere provides any liability/responsibility upon the selling dealer to look into the correctness of the declaration so made except in cases where there is a fraud or collusion or the declaration is forged or fabricated. The assessing authority cannot require a selling dealer in view of rule 67 to look into the correctness of the statements made in the declaration issued under form No. 32. In the present case, undisputedly the goods were supplied by the petitioner and he had charged the concessional rate of tax in view of the declaration supplied by the purchasing dealer. If that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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