TMI Blog1993 (2) TMI 309X X X X Extracts X X X X X X X X Extracts X X X X ..... he U.P. Sales Tax Act, 1948. It applied for a recognition certificate in terms of section 4B of the U.P. Sales Tax Act. Such a certificate was granted to it, vide order dated 17th of June, 1974 and was effective from 28th of May, 1974. According to the recognition certificate granted to the revisionist it was entitled to full exemption from payment of sales tax on the purchases of raw materials made by it. Such certificate was renewed from time to time and was in force during the assessment years under consideration. In pursuance of the said recognition certificate the revisionist made purchases of raw materials and issued declarations in form III-B declaring that it was entitled to full exemption from sales tax. Accordingly the selling dea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer to determine the amount payable in terms of section 3B after the commencement of the said notification. Section 4B(1)(b) of the U.P. Sales Tax Act under which the recognition certificate in question was granted to the revisionist reads as follows: "Where any goods liable to tax under any other provision of this Act are sold by a dealer to another dealer and such other dealer furnishes to the selling dealer in the prescribed form and manner a certificate to the effect that he holds a recognition certificate issued under sub-section (2) in respect thereof, the selling dealer shall be liable in respect of those goods to tax at such concessional rate, or be wholly or partly exempt from tax, whether unconditionally or subject to the condit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as under: "Certified that the goods specified below ordered for in my/our purchase order No........dated.......purchased from you as per bill/cash memo No........ dated.........supplied under challan/invoice No.........dated.........are for use as raw material in the manufacture of goods notified under notification No......... dated........and that the said manufactured goods would be sold in the manner contemplated in sub-section (2) of section 4B. Certified that I hold the recognition certificate No.........issued to me/us by the Sales Tax Officer Circle No..........dated.............and which is effective from.............certified that I/we carry on business at..............(full address) under the name and style of.............." The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is intended to be imposed on a businessman. As demonstrated above, the declarations in form III-B issued by the revisionist were in accordance with the recognition certificate granted to it by the Sales Tax Department and any error in the said certificate which was not the result of any misconduct on the part of the dealer and was patently not in contemplation of the department as well as the dealer at the relevant time cannot make the statements made by the revisionist in form III-B wrong or false. The Revenue cannot burden the dealer with the consequences of its own ignorance. In Massay Engineering Works v. Commissioner of Sales Tax 1987 UPTC 1406 a learned single Judge of this Court has held that where the declaration in form III-B is i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that an order passed by the Sales Tax Officer under section 3B of the Act is not an order of assessment and for this view he placed reliance on a judgment of a learned single Judge of this Court in Commissioner of Sales Tax v. R.S. Steel Works, Bareilly 1987 UPTC 28. In this judgment a view has been taken that an amount levied on a dealer in terms of section 3B is only an amount and is not tax. In my view this view requires reconsideration because an amount levied on a dealer under the Sales Tax Act has to have the nature of tax, fee, interest or penalty and if it is neither of these and is just an "amount" then there is no provision under the Sales Tax Act under which such an amount can be demanded and recovered from the dealer. However, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner specified in, and within thirty days of the service of notice of assessment and demand. There is no other provision in the Act under which an order passed under section 3B and a demand notice in pursuance thereof could be served on a dealer. Sub-section (9) of section 8 deals with the effect of appellate proceedings and it uses the words "where any notice of assessment and demand in respect of any tax or other dues under this Act is served upon a dealer ". These words show that even when the amount levied on a dealer under the Act is not of the nature of tax and comes under the category "other dues" what has to be served on the dealer is a notice of assessment and demand. The use of the word "and" clearly indicates that a notice of dema ..... X X X X Extracts X X X X X X X X Extracts X X X X
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