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TMI Blog2016 (9) TMI 1621X X X X Extracts X X X X X X X X Extracts X X X X ..... gistration certificate. Therefore, the AO was not justified in holding or observing about misuse of declaration form. Admittedly, both the Appellate Authorities have come to a finding of fact that the registration was in force upto the period ended on 31.3.2002. Not only that, all the transactions have been found to be recorded in the books of account and both the Appellate Authorities have come to a concurrent finding that not only the transactions were recorded but all the payments were by account payee cheques, though it may not be relevant and may not be sacrosanct, but this finding is sufficient to hold in favour of the assessee that atleast in the instant case the registration was valid and in force and cancelled much later than th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conclusion that both the firms are non genuine / bogus and there is misuse of declaration form and accordingly differential sales tax was charged from the respondent assessees with interest and penalty. 3. The matter was assailed before the Dy. Commissioner (Appeals), who took into consideration the material on record the relevant assessment year being 2001-02, the rejection/cancellation being later-on, after close of accounting year on 4.9.2002 and at-least when the sale was effected, their registration was valid and was in force and also took into consideration the judgment rendered in the case of State of Maharashtra v. Suresh Trading Company (1997) 11 SCC 378, accordingly allowed the appeal by deleting the tax levied by the AO. 4. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hna Engg. Co. Others (2005) 2 SCC 692. 7. Per contra, learned counsel for the assessee vehemently contended that admittedly all the transactions are by account payee cheques and all the transactions are duly recorded in the books of account of the assessee and it is an admitted case that the year for assessment year 2001-02 ended on 31.3.2002 and the registration, if at all was cancelled by the Revenue on 4.9.2002, much later than transaction took place. The assessee was aware that he is dealing with a trader who is registered, whose certificate is in force and the transaction being with a registered dealer, cannot be held otherwise. He also relied upon plain and simple language of sec. 10 of the RST Act and contended that a similar is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ransaction of purchase/sale is prior to 31.3.2002, at that point of time both the firms were having valid registration certificate. Therefore, in my view the AO was not justified in holding or observing about misuse of declaration form. Admittedly, both the Appellate Authorities have come to a finding of fact that the registration was in force upto the period ended on 31.3.2002. Not only that, all the transactions have been found to be recorded in the books of account and both the Appellate Authorities have come to a concurrent finding that not only the transactions were recorded but all the payments were by account payee cheques, though it may not be relevant and may not be sacrosanct, but this finding is sufficient to hold in favour of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 14. The judgment relied upon by the learned counsel for Revenue in the case of Shri Krishna Engg. (supra) is on a different proposition and is distinguishable. 15. Taking into consideration the over all view and the finding of fact recorded by both the Appellate Authorities, in my view, the claim of assessee was just and proper and even in the instant case there is no finding that the cancellation of registration is from a retrospective date, prior to the transactions having been effected. 16. Accordingly the question of law is answered in favour of the assessee and against the Revenue, and the petitions being devoid of merits, are dismissed. A copy of this order be placed in each connected file. - - TaxTMI - TMITax - CST ..... X X X X Extracts X X X X X X X X Extracts X X X X
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