TMI Blog1986 (6) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... from the date of its issue?" 2.. M/s. Roshanlal Gulshanlal of Bhatapara was being assessed to sales tax for sale of new bardanas for a period between 30th October, 1970 and 19th December, 1971. In the course of assessment proceedings, it revealed that the dealer has shown a purchase of old bardana worth Rs. 60,000 from one Jagdish Prasad Mool Shanker. This Jagdish Prasad Mool Shanker was shown as a registered dealer under the Madhya Pradesh General Sales Tax Act and, therefore, the dealer claimed exemption from the sale of these bardanas under section 2(r)(ii) of the Act. The assessing authority, however, found that the registration certificate of the selling dealer, viz., M/s. Jagdish Prasad Mool Shanker was revoked from its inception ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was subject only to single point tax payable by the first seller who at the time of the sale was a dealer duly registered under the Act. The dealer, viz., M/s. Roshanlal Gulshanlal was, therefore, entitled to deduct, from his taxable turnover, the sale price of the bardana as it was purchased otherwise than in the course of inter-State trade or commerce from a registered dealer in view of section 2(r)(ii) of the Act which at the relevant time read thus: "2. (r) 'Taxable turnover' in relation to any period means that part of a dealer's turnover for such period which remains after deducting therefrom- ....................... (ii) the sale price of goods other than those mentioned in sub-clauses (i) and (iv) of this clause, which have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here is nothing on record to show that the selling dealer had obtained his registration by practising fraud or by unfair means or that the registration can be said to be bogus. There is even no suggestion that the dealer had any hand in securing registration for the selling dealer. The order of the Board of Revenue dated 21st June, 1975 by which it allowed the appeal of the dealer indicates that during the course of assessment all the relevant entries in the dealer's books of account were duly checked and were found to be correct. These entries clearly disclose that the dealer purchased the bardana from a registered dealer. The record is significantly silent as to the reason for the cancellation of the registration of the selling dealer and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pon its own facts and is clearly distinguishable from the present case. There the selling dealer was held to have obtained registration somehow and was held to be a bogus firm. The amount of turnover representing sales from that bogus firm were found to be real and genuine and it was found that the dealer had somehow obtained false declaration in form 12-A under rule 20(3) of the Act. Genuineness of the declaration was doubted. Ultimately, it was found that no sales were made and, therefore, deductions claimed from the turnover under section 2(r)(ii) of the Act were disallowed. That decision really does not turn upon the factum of cancellation of registration of the selling dealer. Our conclusion, therefore, is that the dealer purchased b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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