TMI Blog1955 (2) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... registered dealer for the purposes of the Central Provinces and Berar Sales Tax Act, 1947. The petitioner sub- mits that he carries on the business of purchasing and selling undyed yarn only. In his factory, however, the petitioner dyes yarn for his customers and for this purpose purchases dye-stuff, which he uses for this business. In the course of assessment proceedings pertaining to the period 10th November, 1950, to 30th October, 1951, (i.e., Diwali to Diwali) the petitioner was called upon to furnish the figures of the total purchase price of dyes and chemicals for use in his factory. The peti- tioner complied with the request and furnished the list of his purchases amounting in all to Rs. 35,008-14-0. The amount is not in dispute. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egal or ultra vires, a writ can issue prohibiting the authorities from utilizing the illegal provision against an assessee. The dispute here is really whether rule 20A is intra vires or not. If the rule be found to be defective and unenforceable there is no reason why a writ should not be issued on the analogy of the decision of their Lord- ships of the Supreme Court in Himmatlal v. State of Madhya Pradesh(1). We, therefore, do not think that there is any force in the preliminary objection raised. 5.. The contention of the petitioner on the main case is that the dye-stuffs and chemicals purchased by him are not sold by him to the customers but that they are utilized for dyeing yarn brought by the customers, for which a price is charged wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for himself. Thus, the present petitioner as registered dealer could obtain dyes and chemicals on a declaration being made that he needed them for his own consump- tion, without payment of sales tax. Rule 20A provides for the collection of the tax when the goods obtained under the declaration are not used for the purpose disclosed in the declaration. To that end the rule pro- vides as follows: "If a registered dealer who has purchased any goods after furnish- ing a declaration prescribed under sub-rule (2) of rule 26 from another registered dealer utilises such goods for purposes other than those men- tioned in the declaration, he shall show the purchase price of such goods separately in the return in Form IV for the period during which he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wever contended for the State that it was open to the Legislature to make the tax recoverable from the purchaser as a penalty for evasion and breach of the declaration made by him. But even if this could be done, it was necessary to enact the law in the Act and not in the Rules. Rules can only be framed in consonance with the Act, there being no legislative compet- ence except that derived from the Act under which the Rules are made. To alter the incidence of the tax from the seller to the purchaser was certainly not within the competence of the State Government under its rule-making powers. The tax could only be demanded from a seller under the scheme of the Act and not from a purchaser, and no rule can be made making liable the purchaser ..... X X X X Extracts X X X X X X X X Extracts X X X X
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