Genuineness of dealer declarations must be proved before claiming sales tax deduction on registered-dealer sales.

Deduction for sales to registered dealers under section 5(2)(A)(a)(ii) of the Orissa Sales Tax Act, read with rule 27(2)(i), requires the assessee to prove that the statutory conditions are satisfied. A declaration signed by a registered dealer is only prima facie evidence and is not conclusive. Where the genuineness of the declaration is challenged, the assessee must support it with cogent evidence. If the declaration appears fictitious and genuineness is not proved, the assessing authority may reject it.

---

---

Issues: Whether, for claiming deduction on sales to registered dealers, the assessee must prove that the declaration produced is genuine, and whether the assessing authority can reject a declaration that appears fictitious.

Analysis: Deduction under section 5(2)(A)(a)(ii) of the Orissa Sales Tax Act, 1947, read with rule 27(2)(i) of the Orissa Sales Tax Rules, 1947, is claimed by the assessee and the initial burden lies on him to establish that the statutory conditions are satisfied. Production of a declaration signed by a registered dealer is only prima facie support and is not conclusive. Where the genuineness of the declaration is questioned, the assessee must establish by cogent evidence that the declaration is actually genuine. If the declaration appears fictitious and the assessee fails to prove genuineness, the assessing authority is entitled to reject it.

Conclusion: The assessing officer was competent to reject the declaration on the ground that it appeared fictitious, and the reference was answered against the assessee.

---