TMI Blog1964 (4) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... in the scope of section 5(2)(a)(ii) of the Act. In this case, the Sales Tax Officer was satisfied by a mere statement of the dealer and it has not been shown that in fact the registration certificate of the buying dealer, M/s. S. Lal and Co., did not contain the statement that the goods were intended for resale by him in Orissa. - Civil Appeals Nos. 507-508 of 1963 - - - Dated:- 21-4-1964 - SUBBA RAO K. AND SHAH J.C. AND SIKRI S.M. JJ. -------------------------------------------------- The Judgment of the Court was delivered by SIKRI, J.- The respondent, hereinafter referred to as the dealer, filed a return for the quarter ending June 30, 1951, under the Orissa Sales Tax Act (Orissa Act XIV of 1947) (hereinafter referr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e dealer, but as nothing turns on them as far as these appeals are concerned, they are not being mentioned. The Tribunal stated a case to the High Court and one of the questions referred to was "whether the assessing officer was not wrong in allowing deduction of Rs. 2,40,000 for the quarter ending on 30-6-51 and Rs. 15,677-1-3 for the quarter ending on 30-9-51 from the respective gross turnover of the applicant." The High Court, following its earlier decision in Member, Sales Tax Tribunal, Orissa v. Messrs. S. Lal and Co. Limited [1961] 12 S.T.C. 25., answered the question in the affirmative. The State of Orissa having obtained special leave from this court, these appeals are now before us for disposal. Mr. Ganapathy Iyer, on behalf of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... specified in the purchasing dealer's certificate of registration as being required for resale by him or in the execution of any contract: Provided that no dealer whose certificate of registration has not been renewed for the year during which the purchase is made shall make such a declaration and that the selling dealer shall not be entitled to claim any deduction of sales to such a dealer." It is plain from the terms of section 5(2)(a)(ii) that a selling dealer is entitled to a deduction in respect of sales to a registered dealer of goods, if the goods are specified in the purchasing dealer's certificate of registration as being intended for resale by him in Orissa. No other condition is imposed by the above section. The proviso deals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, rule 27(2) must be reconciled with the section and the rule can be reconciled by treating it as directory. But the rule must be substantially complied with in every case. It is for the Sales Tax Officer to be satisfied that, in fact, the certificate of registration of the buying dealer contains the requisite statement, and if he has any doubts about it, the selling dealer must satisfy his doubts. But if he is satisfied from other facts on the record, it is not necessary that the selling dealer should produce a declaration in the form required in rule 27(2), before being entitled to a deduction. We are, therefore, of the opinion that the High Court came to a correct conclusion. The High Court is correct in holding that the production of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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