TMI Blog1992 (2) TMI 337X X X X Extracts X X X X X X X X Extracts X X X X ..... ear 1969-70?" Briefly stated, the facts as found by the Tribunal are that the dealer had voluntarily got itself registered under the sales tax law a number of years ago. It used to file returns and assessments used to be framed. On the basis of the registration certificates the dealer used to make purchases without payment of sales tax. In the year 1970 the Supreme Court, in the case of Joint Commercial Tax Officer v. Young Men's Indian Association [1970] 26 STC 241, held that there was no transaction of sale involved in the supply of refreshment by the club to its members and no sales tax could be levied. A Division Bench of this Court in the case of Commissioner of Sales Tax v. Roshanara Club Ltd. ILR 1971 Delhi 164 also came to the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rchasing dealer under section 5(2)(a)(ii) of the Bengal Finance (Sales Tax) Act, 1941 (hereinafter referred to as "the said Act") on the purchases which it had effected free of tax on the basis of its registration certificate. The quantum of tax under this provision came to Rs. 27,337. The balance amount of Rs. 38,572.74 was ordered to be refunded. An appeal filed by the dealer was dismissed by the Assistant Commissioner, Sales Tax, who observed that under the second proviso to section 5(2)(a)(ii) where any goods specified in the certificate of registration were purchased by a registered dealer as being intended for resale by him but were utilised by him for any other purpose then the price of goods purchased was liable to be included in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g refund of the amounts paid, and the other of dealer, justifying retention of benefit of the purchases which it had effected free of tax as a dealer. It cannot eat the cake and have it too. In fact, the right of the Revenue to adjust the amount which the club would have paid as tax on the purchases can veritably be treated as a legitimate set-off against the claim of the club for refund. There appears force in the contention of the Revenue that once the club totally disowned the status of a dealer, it could not have filed an appeal before the Assistant Commissioner under section 20 of the Bengal Finance (Sales Tax) Act. It could also not have sought recourse for refund under section 12 of the Act. The remedy for realisation of that amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ases so made is payable. At the time when the dealer got itself registered it was making purchases on the strength of the registration certificate on the plea that the things so purchased were either being sold to the members or were being used as raw materials in the manufacture of commodities like food items, etc., for sale to the members. What the Supreme Court has held in Young Men's Indian Association's case [1970] 26 STC 241 is that there is no transaction of sale by the club in favour of its members. It is precisely for this reason that the dealer was able to secure an order of refund for a sum of Rs. 66,910.50 in respect of the year in question, namely, 1969-70. Once the plea of the dealer, viz., that there is no sale made by it t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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