TaxTMI 
TaxTMI 
TaxTMI 
2003 (4) TMI 552
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....er had sold turpentine oil for Rs. 28,71,232 to M/s. Campher and Allied Products, Bareilly and claimed the rebate on such sale under section 5 read with rule 27-D. The dealer duly filed declaration in forms VII-G and VII-H before the assessing authority as required under rule 27-D(3) after receiving them from the purchasing dealer, M/s. Campher and Allied Products. The assessing authority has disallowed the claim of rebate on the ground that M/s. Campher and Allied Products had shown the stock transfer of the finished goods manufactured out of the rosin turpentine oil and therefore, condition of the rebate as contemplated under rule 27-D was not fulfilled. Dealer filed the appeal before the Deputy Commissioner (Appeals), Sales Tax, Bareilly....
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....purchasing dealer to whom the oils were consumed, duly verified by the Sales Tax Officer in whose jurisdiction industrial premises of such dealer was situated. In the present case, the dealer-opposite party had filed such forms in which no defect was found. He submitted that once the requisite declaration forms were filed the rebate was eligible notwithstanding that it is found that the dealer who had issued the form had not complied with the requirement of rule 27-D. He submitted that it was not the obligatory on the part of the applicant to make further enquiry or verification about the activity of the purchasing dealer. In case the purchasing dealer had made the wrong declaration or disposed of the finished goods otherwise than in the ma....
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....sed from the purchaser is furnished. (2) Any dealer claiming rebate under sub-rule (1) may do so on furnishing to the Sales Tax Officer of his circle a declaration in form VII-G within three months of the expiry of the period referred to in clause (a) of sub-rule (1) above, and produce before the said officer proof of such sale. (3) The dealer shall also submit to the Sales Tax Officer along with the declaration in form VII-G referred to in sub-rule (2) above, declaration in form VII-H from the dealer to whom oils were sold, and by whom they were consumed, duly verified by the Sales Tax Officer in whose jurisdiction the industrial premises of such dealer is situated." Rule 27-D contemplates the rebate on tax levied on oil produced ....
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....s were actually sold inside the State of U.P. or in the course of export outside the territory of India. In the case of State of Madras v. Radio and Electricals Ltd. [1966] 18 STC 222 (SC), the dealer had sold the goods against form C. The claim of concessional rate of tax was refused against such form C on the ground that the purchaser had not used the goods in the manufacturing of the goods for sale within the meaning of section 8(3)(b) of the Central Sales Tax Act. The honourable Supreme Court held as follows: "The Act and the Rules do not impose an obligation upon the purchasing dealer to declare that goods purchased by him are intended to be used for one purpose only, even though under his certificate of registration he is entit....
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....ters, 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." In the case of Bharat Iron Stores v. Commissioner of Sales Tax reported in [1994] UPTC 130 held that "the selling dealer is expected to act only as a careful businessman and the Act does not place on the selling dealer the burden of making all sorts of verification. If there is n....