1972 (10) TMI 125

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....ng the years 1966-1972 sales worth several lacs of rupees, as detailed in the order of the Assessing Authority, annexure C, were made by the appellant-firm (hereinafter referred to as the assessee) to a dealer Messrs. S.L. Satish Kumar, Ludhiana, holding registration certificate No. LUD-III-14011. It is the case of the department that the registration certificate of the aforesaid dealer stood cancelled, vide Assessing Authority's order dated 4th February, 1966. In a writ petition filed by the dealer a stay order was granted, but it is stated that this stay was granted on furnishing security which was not so furnished. In any case, this is not material. That writ petition was finally dismissed on 17th July, 1969. A notice, annexure A, was....

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.... of the writ petition only after making enquiries after the receipt of the notice from the department. The Assessing Authority, however, cancelled the registration certificate of the assessee by his order dated 6th March, 1972 (annexure C). The main reason given by the Assessing Authority was that the registration certificate of the dealer had been cancelled and, in fact, the whereabouts of the firm were also unknown and, therefore, the sales were fictitious. This is what was observed: "His contention that the question of genuineness of the sales made to Messrs. S.L. Satish Kumar, Ludhiana, be taken up at the time of assessment cannot be admitted on the ground that he is making sales against the cancelled registration certificate and ....

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....ause his registration certificate has been cancelled or if the assessee is not in a position to furnish the declaration required under the aforesaid provision from the purchaser, who is alleged to be a registered dealer, the assessee will not be given deductions in respect of these sales and would be liable to pay sales tax irrespective of the fact whether he has charged sales tax or not from such a dealer. The result would be the same if he shows sales to a registered dealer who happens to be a fictitious person. The purchaser being a fictitious person, the assessee will not be able to establish that the sales were made to a registered dealer. Nor would he be able to produce the requisite declaration. One cannot, however, understand how sa....