1971 (7) TMI 130

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..... isions of the aforesaid Act and has given rise to Civil Appeal No. 576 of 1967. The assessment order in respect of the year 1959-60 was also made on the same date but that is governed by the provisions of the Bihar Sales Tax Act, 1959, which came into force on 1st July, 1959. However, the points are common and the provisions of the two statutes do not materially affect the decision of the appeals. While showing his total turnover, the assessee had sought to deduct certain amounts on the ground that sales to registered dealers had been made. The assessee produced declarations for all these sales to registered dealers. The Additional Superintendent of Sales Tax who made the order of assessment disallowed deductions claimed on account of sal .....

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..... mmercial Taxes Tribunal. Before the Tribunal, the statement of the assessee does not appear to have been disputed that the dealers in question had been duly registered and the registration number had been shown against the name of each dealer and further that they had purchased goods from the assessee and had given the requisite declaration to the effect that they were registered dealers and were entitled to purchase goods free of sales tax. After considering the relevant provisions of the Sales Tax Act and the Rules, the Tribunal observed that although the law did not cast on the assessee any responsibility to be satisfied about the correctness of the certificate of registration but if he did not make further inquiries, he ran the risk of .....

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..... equirements of the statute and the rules for the purpose of claiming deductions. So long as the sales were to dealers who were registered under the relevant sales tax laws and who had supplied declarations to the assessee in respect of the sales, the duty which was cast on the assessee had been prima facie performed. The point whether in the event of those purchasing dealers being found to be bogus and fictitious persons, the assessee would lose the benefit of the deductions claimed by him in the absence of any collusion or mala fide dealings on his part is certainly not one of fact and is one of law and required examination of the High Court apart from other allied matters arising out of the questions sought to be referred. We would accord .....

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