TMI Blog1984 (4) TMI 271X X X X Extracts X X X X X X X X Extracts X X X X ..... lses worth Rs. 22,77,666.44 outside the State of Bihar through its arhatia. In C.W.J.C. No. 1507 of 1973, the petitioners, M/s. Bhimraj Madan Lal, had, during the period 1969-70, sold pulses worth Rs. 16,17,876.85 outside the State of Bihar through its arhatia. 3.. The short point for consideration is: Whether the sales tax authorities can reopen the case in respect of the materials which were already available at their earlier assessment order simply for changing or revising their opinion? The answer must be given in the negative. 4.. These petitioners claimed deduction or exemption on account of sales outside the State of Bihar under the Bihar Sales Tax Act, 1959 (hereinafter referred to as the Act). Such sales are exempted from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r assessed at a rate lower than that which was correctly applicable or any deductions therefrom have been wrongly made, the prescribed authority may, subject to such rules as may be made by the State Government under this Act, and, * * * 6.. Annexure 3 has been issued by the sales tax authorities in order to reopen the earlier assessment orders on the ground that the sales tax authorities erred in giving deductions on account of the sales outside the State of Bihar. In other words, the sales tax authorities are of opinion that the authority ought not to have granted deduction on the basis of form IX. As such the petitioners ought to have shown in their turnover such sales on the basis of second proviso to section 7(2)(b) of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed assessment, then only the case can be reopened. The Full Bench has further held that information can also be gathered from the record as well. In the present case the admitted position is that the sales tax authorities did not receive any information from the external sources nor from the record. According to annexure 3 the sales tax authorities reopened the matter simply on the basis of second proviso to section 7(2)(b) of the Act. 10.. It is relevant at this stage to quote section 7(2) and 7(2)(b) of the Act and the second proviso thereto: "7. For the purposes of this Act, the 'taxable turnover' of a dealer shall be- * * * (2) in respect of special sales tax, that part of the gross turnover which remains after deducting therefr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid down in section 7(2)(b)(i) and (ii) of the Act, then in that case the purchasing amount shall be included in the taxable turnover of the purchasing dealer. In other words, the State counsel contends that the petitioners-purchasers purchased these goods for manufacturing pulses. The purchasers, according to learned State counsel, purchased the goods for resale inside Bihar or in course of inter-State trade or commerce or export out of the territory of India and as the purchasers-petitioners did not fulfil the conditions as laid down under section 7(2)(b)(i) and (ii) of the Act; and as such, according to the second proviso to section 7(2)(b) of the Act the amount of purchase shall be included in the taxable turnover of the purchasing deal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IX. Registration certificate is granted by the sales tax authorities in respect of the goods in which he will deal in. 14.. In the present case, the registration certificates disclose that these petitioners will deal in manufactured pulses. It is for this reason that the petitioners are entitled to be exempted from the payment of sales tax to the registered dealer in respect of the goods mentioned in the registration certificate. It is for this reason that the petitioners can purchase raw pulses for manufacturing pulses from a registered dealer without payment of tax. In order to get exemption, the petitioners will have to produce form IX to show that they deal in goods mentioned in the registration certificate. It is an admitted position ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ght or revise opinion in respect of the materials which already existed. On the same materials which were available at the time of the original assessment orders, the sales tax authorities are reopening the case for bringing the case within the purview of the second proviso to section 7(2)(b) of the Act. Can they do so? The answer must be given in the negative. Since all the materials were available at the time of original assessments, the sales tax authorities cannot reopen the case under section 18(1) of the Act. 16.. The word "information" contemplated under section 18(1) of the Act is an "information" which is available from the external source after the passing of the assessment orders. No such information is available on the record. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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