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TMI Blog2003 (1) TMI 695X X X X Extracts X X X X X X X X Extracts X X X X ..... e goods at concessional rate and was not registered even during that period under Section 4-B of the Act? 3. The brief facts of the case are that the dealer opposite party sold Iron and Steel to M/s. Kalpna Rugs, Varanasi for ₹ 8,96,485.00 and received Form 3-B in respect of the said sale from M/s. Kalpna Rugs, Varanasi. The said Form 3-B was filed the time of assessment and exemption was claimed. The Assessing Authority had disallowed the claim of exemption against Form 3-B on the ground that M/s. Kalpna Rugs, Varanasi was holding recognition certificate with effect from 3rd March, 1983 and was not holding the recognition certificate during this period. Against the order of Deputy Commissioner (Appeal), the dealer filed a Second ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax. Sub-section (2) of this section envisages that a manufacturer may apply and obtain in the prescribed form a recognition certificate in respect of goods referred to in sub-section (1) which are required by him for use as raw material for the purpose of manufacture in the State of U.P. notified goods which are intended to be sold by him in the State or in the course of inter-State trade or commerce or in the courseof export out of India. Sub-section (1), apart from referring to the category of goods about which a recognition certificate may be obtained, also lays down, amongst others, that where a dealer sells those to a manufacturer who holds a recognition certificate in respect of those goods he shall not be liable to levy of sales ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Limited and another, (1966) 18 S.T.C. 222. a similar question had arisen before the Supreme Court in regard to the power of the Assessing Authority to decide whether the goods covered by a certificate of registration issued under the provision of the Central Sales Tax Act and the Rules framed thereunder, which entitled them to a concessional rate of tax, were rightly so included in the certificate of registration or not. The Supreme Court held that while it may be open to the Assessing Authority to scrutinize the certificate to find out whether the certificate was genuine, normally it would not be open to him to question the wisdom of the authority which issued that certificate in including a particular article therein. Following this dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rules which made it clear, as emphasized by the Hon'ble Supreme Court as well as in my judgment in M/s. Bharat Iron Stores, that the selling dealer is expected to act only as a careful businessman and the Act does not place on the selling dealer the burden of making all sorts of verification. If there is nothing in Form-III-A raising a doubt about its genuineness or the genuineness of the purchasing dealer of the fact that the purchasing dealer is a registered dealer. The selling dealer having acted on such a Form 1II-A cannot be burdened with any liability if later on it is found that the purchasing dealer was non-existent or its registration certificate had alredy been cancelled. 10. In the case of Mi. Indra Steel Pvt. Ltd. v. Com ..... X X X X Extracts X X X X X X X X Extracts X X X X
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