TaxTMI 
TaxTMI 
1974 (11) TMI 84
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.... of Rs. 2,60,259.32 (1964-65) and Rs. 4,35,444.63 (1965-66) and claimed deductions under section 5(2)(a)(iv) of the Act on the ground that cement was sold against the certificates issued by the Executive Engineers of the Punjab State Electricity Board to the effect that it was required for use in the generation and distribution of electrical energy. The Assessing Authority allowed the deductions while making assessment orders. The Deputy Excise and Taxation Commissioner (Appeals), Rohtak, exercising the powers of the Commissioner, started suo motu proceedings under section 21 of the Act, and, after hearing the petitioner, disallowed the deductions to the tune of Rs. 1 lakh for the year 1964-65 and Rs. 2 lakhs for the year 1965-66 on the gro....
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.... are as under: "5. (2) In this Act the expression 'taxable turnover' means that part of a dealer's gross turnover during any period which remains after deducting therefrom- (a)............................................................................ (iv) sales to any undertaking supplying electrical energy to the public under a licence or sanction granted or deemed to have been granted under the Indian Electricity Act, 1910 [9 of 1910], of goods for use by it in the generation or distribution of such energy..........." The requirements of the clause are: (a) that the sales must have been made to an undertaking supplying electrical energy to the public; (b) the undertaking must hold a licence or sanction under the....
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....adras v. Radio and Electricals Ltd.[1966] 18 S.T.C. 222 (S.C.). That case related to inter-State sales under the Central Sales Tax Act, 1956, and the Rules framed thereunder. It was pointed out by the Supreme Court that the scheme of the Central Sales Tax (Registration and Turnover) Rules, 1957, read with the Central Sales Tax Act, 1956, showed that the purchasing dealer as well as the selling dealer must register themselves under the Central Sales Tax Act. If declared goods are specified in the certificate of registration of the purchasing dealer and if it be certified that the goods are intended for resale by him, the sale is subject to concessional rate of tax under section 8(1). The Act and the Rules do not impose an obligation up....
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....fy himself that the purchaser is a registered dealer, and the goods purchased are specified in his certificate; but his duty extends no further. If he is satisfied on these two matters, on a representation made to him in the manner prescribed by the Rules and the representation is recorded in the certificate in form C, the selling dealer is under no further obligation to see to the application of the goods for the purpose for which it was represented that the goods were intended to be used. Whether the goods specified in the registration certificate in form B can be used for the purpose is not for the selling dealer to determine. These observations can be applied mutatis mutandis to the case before us. Once the responsible officers of the P....