2003 (4) TMI 550

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....xing the turnover at higher rate with regard to sales made to certain customers was discharged by the assessing officer; but the said order was set aside by the Deputy Commissioner (Executive) in exercise of power under section 10-B of the Act on the finding that the dealer has not been able to show that the sales made by it to certain dealers were for the purposes of manufacture of brassware. The Deputy Commissioner (Executive) concluded that in respect of certain sales of sheets and circles, the dealer could not produce the certificate from the purchasing dealers that the goods were used in the manufacture of brassware. Consequently, treating the said items as unclassified one higher rate of tax was imposed. The Tribunal in Second Appeals....

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....circular. The circular was issued in pursuance of rule 4(2) of the Rules framed under the Act and the same is binding on the department so far as the circular is beneficial to the dealer. It was further submitted that by the said circular the rigour of proving that the goods were sold to manufacturers of brasswares was softened. He further submitted that the department is estopped from saying anything against the said circular. 5.. I have given careful consideration to the respective submissions of the parties. In [2001] 122 STC 100; 2000 UPTC 472 (Commissioner of Sales Tax, A.P. v. Indra Industries), the Supreme Court has held that the circular issued by the Commissioner of Sales Tax even if erroneous is binding on the sales tax authorit....

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....tion may be read as generally used and no burden may be laid upon the selling dealer to produce any evidence to show how the goods were used after sale. The Law Department has taken into consideration the real difficulties faced by the selling dealers of the State and to smoothen the administration of trade tax law has issued the said circular and has given a plausible meaning to the words used. It cannot be said that the interpretation put by the Law Department is wholly absurd or arbitrary. On the other hand, by putting such interpretation as put by the Law Department it will encourage honesty amongst the traders inasmuch as to get the concessional rate of tax the dealer will not be required to obtain a certificate which may, in a number ....