TMI Blog1988 (5) TMI 327X X X X Extracts X X X X X X X X Extracts X X X X ..... position has been made clear in the rule itself which, after the amendment, expressly provides that the certificate will take effect from the date of the application made by the dealer and not merely from the date of the issue. - Civil Appeal No. 768 of 1975, Writ Petition No. 4225 of 1971 - - - Dated:- 9-5-1988 - PATHAK R.S., AND VENKATACHALIAH M.N. JJ. None appeared for the respondent. S.C. Manchanda, Senior Advocate (A.K. Srivastava, Advocate, with him), for the appellants. -------------------------------------------------- The judgment of the Court was delivered by M.N. VENKATACHALIAH, J. -This appeal by certificate, preferred by the State of U.P. against the judgment dated 3rd January, 1973 of the Alla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 3-D of the Act, a dealer is liable to purchase tax on oil- seeds at 3 per cent ad valorem on the turnover of the purchases made by the dealer from the cultivators or other unregistered dealers. Section 4-B of the Act, however, contemplates special reliefs to certain manufacturers of notified goods, the relief being in the form of concessional rate of purchase tax or exemption therefrom, as the case may be, as notified by the State Government if the "dealer holds a recognition certificate issued under sub-section (2) in respect thereof". On 10th February, 1969 the State Government notified that oils of all kinds to be "notified goods" for purposes of section 4-B and that the purchases by the dealer liable to tax on the turnover of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on, has accepted this contention. The provisions of section 4-B and rule 25-A(5) may now be noticed. "4-B. Special relief to certain manufacturers.-(1) Notwithstanding any- thing contained in sections 3, 3-A, 3-AA and 3-D- (a) where any goods liable to tax under section 3-D are purchased by a dealer who is liable to tax on the turnover of his first purchases under that section and the dealer holds a recognition certificate issued under sub- section (2) in respect thereof, he shall be liable in respect of those goods to tax at such concessional rate, or be exempt from tax, as may be notified in the Gazette by the State Government in that behalf; (b) where any goods liable to tax under any other section are sold by a dealer to another ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assistant Commissioner (Executive) of his range for an extension of time, after stating the reasons for which it is not possible to issue the certificate in time. Such certificate shall. take effect from the date of its issue." (underlining Here italicised. supplied) In reaching such conclusion on the point as it did the reasoning that commended itself to the High Court was this: ".........The efficacy of the recognition certificate under clause (a) aforesaid becomes material and relevant at the time of the quantification of the purchase tax, i.e., when the assessment order is being drawn up. It is in the assessment proceedings that the liability to pay tax at a concessional rate fructifies. A dealer would be entitled to the concessio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted that the clear intendment of the provision was that the dealer should hold the "recognition certificate " at the time of the purchases and that it would not be sufficient compliance with the statute if the dealer comes to hold it subsequently. He accordingly commended the view that found favour with the learned Judge in the minority in the High Court. We did not have the benefit of the arguments from the side of the respondent, which has remained unrepresented. It is really a matter of construction of the language of section 4-B; whether the dealer should hold a recognition certificate at the time the purchases were made or whether the requirements of the section should be held to be satisfied if the dealer holds such a "recognit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he word "holds" in the section by adding the words "at the time of the purchases". It is true, the words "in respect thereof" as Lord Greene, M.R., said are "colourless words" (see Cunard's Trustees v. Inland Revenue Commissioners [1946] 174 LT 133), but in section 4-B, they are in their reference to the certificate, sufficiently, though non-specifically wide enough to include a certificate obtained later but pertaining to the turnover in question. If this is the scheme of section 4-B in that it does not exclude from its contemplation the efficacy and sufficiency, for its purpose of a certificate issued subsequently, then, the rule which compels only its prospective operation might, not unreasonably, be held to be inconsistent with and ul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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