TaxTMI 
TaxTMI 
2020 (3) TMI 10
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....5(2)(a)(ii) of the Punjab General Sales Tax Act, 1948?" The brief facts are that the assessee was engaged in trading of AC sheets, angles and hardware goods. For the assessment year 1983-84, returns were filed and the assessment was finalised on 2.2.1987. The order was taken up in revision on the ground that the goods purchased from the petitioner were not mentioned in the registration certificate of the purchasing dealer hence deduction under Section 5(2)(a)(ii) was dis- allowed vide order dated 31.3.1989. The revision filed before the Sales Tax Tribunal, Punjab (for short, 'the Tribunal') was dismissed on 28.6.1993. Before dealing with the question, relevant provisions are reproduced below: "Section 5(2)(a)(ii) of the Act 5.....
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....turnover the amount in respect of sale on the grounds that he is entitled to make such deduction under the provisions of sub-clause (ii) of clause (a) of sub-section (2) of section 5, shall obtain a declaration duly filled in and signed by the purchasing dealer or his agent, as prescribed under rule 55-A. (2) The selling dealer shall prove to the satisfaction of the assessing authority, the genuineness of his claim by producing the said declaration in respect of sale of such goods at the time of assessment or when called upon to do so, by notice, by a competent authority under the Act. FORM S.T.IV Certificate of Registration (See rule 5 of the Punjab General Sales Tax Rules, 1949) ........................District This is to certify ....
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....axable turnover'. In the eventualities mentioned in the sub-clauses, the deduction is to be made from the gross turnover and net would be the taxable turnover. To decide the present issue, sub-section (2)(a)(ii) to Section 5 of the Act would be relevant. It provides that sales made to a registered dealer of the goods (except goods taxable at first stage) intended to be re-sold in Punjab or in the course of inter-State trade or commerce or to be exported out of India or the goods specified in the registration certificate of the purchaser for use in manufacture of goods, for sale are to be deducted from the gross turnover. Rule 26 prescribes the procedure for availing deduction under Section 5(2)(a) of the Act and provides for furnishing ....