1973 (4) TMI 112

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the year 1963-64 the assessee returned a taxable turnover of Rs. 545.90. The assessing authority, however, after a check of the accounts of the assessee, determined the taxable turnover as Rs. 64,065.02. In so doing, the assessing authority disallowed the assessee's claim for exemption in relation to the turnover of Rs. 44,355.95 said to relate to second and subsequent inter-State sales coming under section 6(2)(b) of the Act, as being sales by transfer of documents of title while the goods were in movement from one State to another. The assessee in support of his claim for exemption produced D forms from the subsequent buyer, that is, the Southern Railway, but no E-1 forms were produced. Aggrieved against the assessment, the assessee fi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....es that the sale in respect of which exemption is claimed under subsection (2) of section 6 is to a registered dealer, section 6(2) will not come into play. It is true that the assessee has produced D form certificate from the railway, the purchasing dealer. But such a certificate is relevant only for the purpose of the proviso to section 6(2)(b) and not for the purpose of sub-section (2). It is true that the assessee has filed E-1 forms before the Appellate Assistant Commissioner. But E-1 forms are also not relevant as they have been given only by some of the selling dealers and has no relevance on the question as to whether the buying dealer in the second or subsequent interstate sale is a registered dealer or not. What the learned cou....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e, section 6(2) cannot be applied to the sales in question as the sales were not to a registered dealer. The fact that section 7(2) gives some option to certain dealers to register or not to register themselves as dealers under the Central Sales Tax Act is quite irrelevant for the purpose of finding out whether the buying dealer is a registered dealer or not. As a matter of fact, the same statute, while dealing with the concessional rates of tax in respect of inter-State sales, specifically provides under section 8(1) that the benefit of concessional rate of tax will be available to all sales made to Government or to registered dealers other than the Government. Section 8(1) also specifically directs that the concessional rate of tax will b....