9911796707
TMI Blog1977 (3) TMI 128X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt of Punjab and Haryana is: Whether the sales made to a dealer who has applied for registration under the Punjab General Sales Tax Act, 1948, before his application is allowed, are to be treated as sales to an unregistered dealer or registered dealer, when the registration is effected from the date of the application. M/s. Patiala Biscuits Manufacturers Pvt. Ltd. (hereinafter referred to as the assessees) appointed M/s. Rajpura Biscuit Company as their sole selling agents. The agents made an application on January 1, 1966, in the appropriate form for registration as a dealer under the Punjab General Sales Tax Act, 1948 (hereinafter called the Act). On the same day, the agents (referred hereafter as the purchasing dealer) made a similar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso been taxed with regard to the same transactions resulting in double taxation which was against the basic scheme of the Act, the Rules and the notifications issued thereunder. On these premises, the High Court allowed the writ petition and quashed the impugned order to the extent to which it was contrary to section 5(2)(a)(ii) of the Act in respect of sales made between January 1, 1966, and March 27,1966. The High Court however granted a certificate under article 133(1)(a) and (c) of the Constitution, on the basis of which the revenue has come in appeal to this Court. It would be appropriate to have, at the outset, a look at the relevant provisions of the Act and the Rules. The material provision is in section 5(2)(a)(ii), which reads ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mposed under section 23 in respect of any contravention of sub-section (1) of this section, the Commissioner shall register such dealer and grant him a certificate of registration, and such registration shall take effect as if it had been made under sub-section (3) of this section on the dealer's application........." In case a dealer commits default in not getting himself registered as required by section 7, certain consequences follow. Under section 11(6) such a defaulting dealer is liable to be assessed on the basis of best judgment, and the Assessing Authority may, in addition to the tax so assessed, impose on him by way of penalty a sum not exceeding one and half times that amount. Such a defaulter is further liable to prosecution und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provides: "A dealer, who wishes to deduct from his gross turnover the amount in respect of a sale on the ground 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 of the Act, shall, on demand, produce in respect of such a sale the copy of the relevant cash memo or bill, according as the sale is a cash sale or a sale on credit, and a declaration in writing in form S. T. XXII by the purchasing dealer or by his agent, that the goods in question are intended for resale in the State of Punjab or such goods are specified in his certificate of registration for use by him in the manufacture in the State of Punjab of any goods for sale." Rule 26 was also amended later. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stration certificate retrospectively, with effect from the date of the application. It is maintained such a power was conferred on the authority, only by the Punjab Government Notification No. GSR-237/PA 46148/S-27/Amd. (5)166 with prospective effect from October 10, 1966. Taking the last point first, we are of the opinion that the amendment of rule 5 by the Punjab Government Notification dated October 10, 1966, did not confer any new or additional power on the registering authority. The power to grant the registration certificate with effect from the date of the application was already there. The amendment was only clarificatory of the law as it stood prior to it. It only made explicit which was formerly implicit. A definite indication is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the notification dated October 10, 1966. Thus construed harmoniously with the related statutory provisions, the requirement of rule 26 will be substantially satisfied, if the number of the registration certificate-granted subsequently, but covering retrospectively the period of the sales in respect of which deduction is claimed-is supplied by the claimant along with the declaration of the purchasing dealer at the time of assessment to the Assessing Authority. It is thus clear as daylight that at the relevant time also, the registering authority was fully competent to issue the registration certificate to the dealer with retrospective effect from the date of filing the application. A perusal of the registration certificate would show that i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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