TMI Blog1988 (8) TMI 410X X X X Extracts X X X X X X X X Extracts X X X X ..... r pertaining to the commodity copra, which is liable to tax at the point of last purchase in this State, the names and particulars of the dealers (purchasers) mentioned in the books of accounts were fictitious, which conclusion was reached after an enquiry and, therefore, a show cause notice was issued to the petitioner calling upon him to show cause why the exemption claimed by the assessee in respect of tax on the turnover pertaining to copra should not be rejected. In his objections, the petitioner contended that it was not laid down in the Act or the Rules that a dealer in copra would not be allowed the exemption if he had sold the commodity to unregistered dealers. It was possible that the purchasers were doing clandestine business wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessed, levied and collected in such manner as may be prescribed..............". Item 5 of the Third Schedule says that copra is liable to tax at the point of last purchase in the State at the rate of 4 paise in the rupee. Rule 19-A, which was made to effectuate the object of section 6, reads: "Every dealer liable to submit a return shall submit a return in form E in duplicate, showing the details of the purchases or sales on which exemption is claimed along with the return or returns he is liable to submit: Provided that the details of the purchases or sales of the goods specified in the Fourth Schedule of the Act or of the goods liable to tax under the Central Sales Tax Act, 1956, need not be submitted in the return in form E." ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... object laid down in section 6, viz., "the levy of tax in respect of declared goods shall be at the rate and at the point specified in the Third Schedule". Column 3(a) of form E obligates the assessee to mention the name and full address including the door number and the locality of the purchaser. Column 3(b) says that the particulars of registration number with code letters should be specified. These two columns, in our view, do not lay down that the purchasers should be registered dealers. In fact there is no requirement in law that the purchasers must necessarily be registered dealers. Inasmuch as the taxable event is at the point of last purchase in this State, in order to enable the assessing authority to ascertain the details of the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the machinery for the quantification of the tax and the levying and collection of the tax so imposed. While charging provisions are construed strictly, machinery sections are not generally subject to a rigorous construction. The courts are expected to construe the machinery sections in such a manner that a charge to tax is not defeated." The Supreme Court also cautioned: "It is the duty of the court while interpreting the machinery provisions of a taxing statute to give effect to its manifest purpose having a full view of it. Wherever the intention to impose liability is clear courts ought to have no hesitation in giving what we may call a commonsense interpretation to the machinery sections so that the charge does not fail." Sri M.S. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs as contended by the assessee". The question that fell for adjudication in that case is of no assistance to the petitioner herein. The learned counsel for the petitioner also relied upon the judgment of a Division Bench of this Court in Special Appeals Nos. 4, 5 and 6 of 1987 dated March 1, 1988 reported as Machilipatnam Central Consumers Co-operative Stores Limited v. Commissioner of Commercial Taxes [1988] 71 STC 153 (AP). Based upon certain material seized at the time when the raid was conducted by the sales tax authorities and also taking into consideration certain statements recorded by the authorities without the knowledge of the assessee, huge penalties were levied. That order was set aside by the Division Bench in those special ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hasers could as well be nonregistered dealers, but by mistaken understanding of the legal position the petitioner had mentioned the registration numbers of the purchasers. We are unable to appreciate this contention. Having given the registration numbers of the purchasers, which were found to be false and the purchasers fictitious persons, it was not open to the petitioner to turn round and say that still he would establish that those purchasers could be non-registered dealers. Further, it must be mentioned that before the assessing authority, no attempt was made by the petitioner to produce any of the so-called purchasers to establish his claim that he was not liable to tax. He did not make any request for an opportunity to adduce evidence ..... X X X X Extracts X X X X X X X X Extracts X X X X
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