TaxTMI 
TaxTMI 
1970 (4) TMI 146
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....er. Subsequently the business was taken over by a partnership concern which carried on the business in the same trade name. The partnership, however, did not get itself registered under the belief that the old registration certificate would enure to its benefit. In respect of the assessment year 1960-61 the assessee was assessed to a tax of Rs. 317.80 on a net turnover of Rs. 4,540 under the Central Sales Tax Act. Even though the assessee-firm had filed the requisite declaration form 'C' covering the turnover, it was assessed at 7 per cent. and not at the concessional rate of 1 per cent. on the ground that the assessee was not a registered dealer. The assessee appealed and its appeal was allowed by the Assistant Commissioner (judicial), Varanasi, who took the view that the concessional rate was available even to an unregistered dealer so long as the goods were sold to a registered dealer, who had furnished the requisite 'C' forms. This view has been confirmed by the judge (Revisions) to whom the Commissioner of Sales Tax had applied in revision. Being dissatisfied, the Commissioner applied for a reference under section 11(1), but the revising authority declined to make a reference.....
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....e dealer selling the goods furnishes to the prescribed authority in the prescribed manner- (a) a declaration duly filled and signed by the registered dealer to whom the goods are sold containing the prescribed particulars in a prescribed form obtained from the prescribed authority; or (b)...................." Reading the above provisions together, the scheme of the Act appears to be to tax inter-State sales at the rate of 7 per cent. unless such sales are entitled to concessional rates mentioned in sub-clause (b) of subsection (1) of section 8. The concessional rate is available only if the following conditions are satisfied: (i) that the sales are to a registered dealer, (ii) that the goods sold are such as are mentioned in sub-section (3) of section 8. Sub-section (3) of section 8 then enumerates the goods or class of goods which are specified in the certificate of registration of the registered dealer purchasing the goods and such goods are either intended for resale by him or meant for use by him in the manufacture or processing of the goods for sale, or are containers or packing materials for use by the registered purchasing dealer, and (iii) the purchasing dealer fur....
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....elf liable to penalty or prosecution under sections 10 and 10-A of the Act. But on his failure to get himself registered, a dealer does not forfeit the right to be assessed at the concessional rate on his turnover of interState sales, provided other conditions referred to above are satisfied. To put it in another way, the failure of a person to get himself registered does not in any way affect or control the rates of tax specified in section 8. The learned Standing Counsel submitted that the word "dealer" should be interpreted to mean a "registered dealer". That submission is not correct. A dealer has been defined in section 2(b) of the Act to mean "any person who carries on the business of buying or selling and includes a Government which carries on such business." The registration of a dealer is provided separately under section 7 of the Act and under the relevant Rules framed under the Act. Under the charging section, the tax is to be paid by every dealer-whether registered or unregistered. Accepting the contention of the learned Standing Counsel would mean that it is only a registered dealer who will be liable to pay tax, with the result that unregistered dealers would escap....
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....in the purchase price the sales tax which ultimately he will have to pay on his turnover of inter-State sales. An unregistered dealer who sells goods to a registered dealer against valid 'C' forms is liable to pay tax at the concessional rate and he would naturally add to the price the tax at that rate. If the purchasing dealer happens to be an unregistered dealer in that case, the tax payable would be at the higher rate of 7 per cent. If the selling dealer is a registered dealer, he may charge tax at that rate separately, but if he is not a registered dealer, he may add tax at that rate to the sale price. The Supreme Court in the case of State of Madras v. Radio and Electricals Ltd.(1) was not dealing with the question which is for consideration before us. There the question was as to whether a dealer who had sold goods against 'C' forms was under any liability to see that the goods were utilised by the purchasing dealer for the purposes indicated by him in his declaration in 'C' forms or where no such purpose was indicated, whether the 'C' forms could be rejected. The Supreme Court held that so long as the goods were sold to a dealer, who was a registered dealer and the goods sol....