Sales deduction for registered dealers cannot be denied merely because goods were not listed in the registration certificate.

Section 5(2)(a)(ii) of the Punjab General Sales Tax Act, 1948 permits deduction for sales to a registered dealer for resale, or for use in manufacture of goods for sale where the goods are specified in the purchaser's registration certificate. Rule 26 and Form ST-IV regulate the declaration process, but the deduction cannot be refused merely because the sold goods are not separately listed in the registration certificate when the purchaser is registered for resale or trading, and omission to score the purchase purpose in the declaration form is not decisive in that setting. The deduction was therefore allowable and the disallowance was unsustainable.

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Issues: Whether the assessee was entitled to deduction under section 5(2)(a)(ii) of the Punjab General Sales Tax Act, 1948 when the purchasing dealer was registered and the declaration forms were not fully endorsed as to purpose or the goods sold were not specified in the registration certificate.

Analysis: Section 5(2)(a)(ii) allows deduction of sales made to a registered dealer for resale or of goods specified in the purchaser's registration certificate for use in manufacture of goods for sale. Rule 26 prescribes the procedure and the declaration form, while Form ST-IV shows that the registration certificate specifies only goods purchasable for use in manufacture and not goods intended for resale. The deduction cannot be denied merely because the goods sold are not listed in the registration certificate when the purchaser is registered for resale or trading as well, and non-scoring of the purchase purpose in the declaration form is not decisive in that situation.

Conclusion: The assessee was entitled to the deduction. The disallowance based on non-specification of the goods in the registration certificate was not sustainable.

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