First-stage sales tax exemption certificate can be issued by the original registered dealer, not only the immediate seller.

The proviso to section 5(1-A) of the Punjab General Sales Tax Act, 1948 was construed purposively to prevent multiple taxation and confine levy to the first stage of sale. The certificate supporting exemption need not be issued by the immediate registered seller to the assessee; it is sufficient if it is issued by the registered dealer from whom the goods were originally purchased at the first stage, provided it establishes tax payment at that stage. A stricter reading requiring an immediate seller's certificate was rejected because it would defeat the exemption's legislative purpose.

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Issues: Whether, under the proviso to section 5(1-A) of the Punjab General Sales Tax Act, 1948, the certificate supporting exemption from sales tax at a subsequent stage must be signed by the immediate registered seller to the assessee, or whether it is sufficient if it is issued by the registered dealer from whom the goods were originally purchased at the first stage.

Analysis: The proviso was construed in the light of its object, namely, to ensure that tax is levied only at the first stage of sale and that the same goods are not subjected to multiple taxation. The decisive consideration was that the statutory requirement is satisfied if the certificate establishes payment of tax at the first stage by a registered dealer from whom the goods were originally purchased. The words in the proviso were read in a manner that furthers the legislative purpose and avoids defeating the exemption by insisting on an unnecessary link of immediate registered purchase, which would not advance the object of the levy.

Conclusion: The certificate need not be from the immediate seller to the assessee; a certificate by the registered dealer from whom the goods were originally purchased at the first stage is sufficient. The question was answered in the negative, in favour of the assessee and against the revenue.

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