2003 (1) TMI 695

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.... the purchasing dealer who was not entitled to purchase those goods at concessional rate and was not registered even during that period under Section 4-B of the Act?" 3. The brief facts of the case are that the dealer opposite party sold Iron and Steel to M/s. Kalpna Rugs, Varanasi for ₹ 8,96,485.00 and received Form 3-B in respect of the said sale from M/s. Kalpna Rugs, Varanasi. The said Form 3-B was filed the time of assessment and exemption was claimed. The Assessing Authority had disallowed the claim of exemption against Form 3-B on the ground that M/s. Kalpna Rugs, Varanasi was holding recognition certificate with effect from 3rd March, 1983 and was not holding the recognition certificate during this period. Against the or....

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....lief to certain manufactures in the matter of levy of sales tax. Sub-section (2) of this section envisages that a manufacturer may apply and obtain in the prescribed form a recognition certificate in respect of goods referred to in sub-section (1) which are required by him for use as raw material for the purpose of manufacture in the State of U.P. notified goods which are intended to be sold by him in the State or in the course of inter-State trade or commerce or in the courseof export out of India. Sub-section (1), apart from referring to the category of goods about which a recognition certificate may be obtained, also lays down, amongst others, that where a dealer sells those to a manufacturer who holds a recognition certificate in respec....

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....urt. 7. In the State of Madras v. Radio and Electricals Limited and another, (1966) 18 S.T.C. 222. a similar question had arisen before the Supreme Court in regard to the power of the Assessing Authority to decide whether the goods covered by a certificate of registration issued under the provision of the Central Sales Tax Act and the Rules framed thereunder, which entitled them to a concessional rate of tax, were rightly so included in the certificate of registration or not. The Supreme Court held that while it may be open to the Assessing Authority to scrutinize the certificate to find out whether the certificate was genuine, normally it would not be open to him to question the wisdom of the authority which issued that certificate in inc....