TMI Blog1971 (11) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... he Central Sales Tax Act has been rightly set aside?" 2.. The answer to the second question depends on the answer of the first question. If the first question is decided against the assessee, the second question will have to be decided in the same manner. 3.. The facts of the case, in brief, are that the assessee carries on the business of manufacture and sale of water for injections as also some medicines. The assessee was registered under the M.P. General Sales Tax Act, 1958, and had also obtained registration certificate under section 7(2) of the Central Sales Tax Act. He was however not registered under section 7(1) of the said Act. The period of assessment is from 25th November, 1964, to 31st March, 1965, with regard to inter-State ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er whose turnover during the 12 months immediately preceding the commencement of the Act or during the 12 months immediately preceding the date on which it exceeds the limits specified in sub-section (5) of section 4 to apply for registration. Section 16 provides for voluntary registration. Thus both under the State and the Central law provision has been made to enable and to obtain voluntarily registration notwithstanding the fact that the liability to pay sales tax had not arisen. In the present case the appellant had obtained a registration certificate under section 7(2) of the Central Act, that in anticipation of its liability to pay sales tax under the Central law arises. In the circumstances it cannot be said that the appellant remain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... days from the date on which the dealer becomes liable to pay tax under the Act, which means that under section 7(1) the dealer is required to get himself registered within one month from the date of the first sale effected by him in the course of inter-State trade and commerce. The language of section 7(1) is also imperative. Sub-section (2) of section 7, on the other hand, provides: "(2) Any dealer liable to pay tax under the sales tax law of the appropriate State...............or any part thereof, any dealer having a place of business in that State or part, as the case may be, may, notwithstanding that he is not liable to pay tax under this Act, apply for registration under this Act to the authority referred to in sub-section (1), and e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for resale by him or subject to any rules made by the Central Government in this behalf, for use by him in the manufacture or processing of goods for sale or in mining or in the generation or distribution of electricity or any other form of power; (c) are containers or other materials specified in the certificate of registration of the registered dealer purchasing the goods, being containers or materials intended for being used for the packing of goods for sale; (d) are containers or other materials used for the packing of any goods or classes of goods specified in the certificate of registration referred to in clause (b) or for the packing of any containers or other materials specified in the certificate of registration referred to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to pay tax under the sales tax law of the appropriate State. This also shows that where the possibility of recovering sales tax on the sales effected by the purchasing dealer ceases, the certificate granted under sub-section (2) of section 7 is also cancelled. The whole scheme of the Act, therefore, clearly points to the fact that the registration certificate under section 7(2) is obtained by purchasing dealers who are not liable to pay Central sales tax with a view to purchase goods at a cheaper rate for being utilised for resale or in manufacture of goods purchased by them. 5.. It is no doubt true that the language of section 7(1) and section 7(2) is not very clear and that on a first look at the provisions one is tempted to take the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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