TMI Blog1999 (2) TMI 662X X X X Extracts X X X X X X X X Extracts X X X X ..... anpur, M/s. S. S. Steel Company, Halsi Road, Kanpur and M/s. Vinay Steel Suppliers, Nawyug Market, Ghaziabad it was found that the exemption was wrongly granted to the dealer. As regards Form 3 - A issued by M/s. Pramod Kumar Ashok Kumar, Daryapur, Sultanpur it was found that no such form is said to have been issued by the department. As regards M/s. S. S. Steel Company, Halsi Road, Kanpur, the Sales Tax Officer, Kanpur had intimated that the registration of the form was cancelled from 24th November, 1979. As regards M/s. Vinay Steel Suppliers, Nawyug Market, Ghaziabad, the Sales Tax Officer, Ghaziabad had intimated that the sales alleged to be made to this dealer was not verificable. Accordingly in the assessing authority repoened the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the said firm, the seller cannot be taxed. 3. In appeal filed by the department before the Sales Tax Tribunal the aforesaid findings of the Deputy Commissioner, Sales Tax were affirmed by the Tribunal. 4. Aggrieved by the judgment and order of the Tribunal the department has filed the present revision under Section 11 of the Trade Tax Act. 5.1 have heard the learned Standing Counsel as well as Sri Bharatji Agarwal, learned Senior Counsel appearing for the opposite party. 6. It is vehemently argued by the learned Standing Counsel that so far as the Form 3 - A issued by M/s. Pramod Kumar Ashok Kumar, Daryapur, Sultanpur are concerned, there was definite information that the forms were not issued by the department to the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... question were issued to the purchasing firm during the period of its valid registration. In case the said firm used the genuine Form 3 - A after cancellation of the registration then action under Section 3 - B of the Act could be taken only against the purchasing dealer and not against the selling dealer who bona fidely accepted Form 3 - A. As regards M/s. Vinay Steel Suppliers, Naywug Market, Ghaziabad it is submitted that there is no dispute that the firm was registered in the year in question and the forms in question were issued to the said firm. In case the said firm had not made any entry of the purchases in its accounts book and the purchases were not verifiable from its accounts book men no tax liability could be imposed upon the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mala fidely, in such a case also the selling dealer cannot be saddled with the liability for payment of tax. If the purchasing dealer had wrongly used validly issued Form 3 - A after cancellation of its registration, such dealer can be proceeded against under Section 3 - B of the Trade Tax Act. There is no error in the findings of the lower appellate authorities. As regards M/s. Vinay Steel Suppliers, Nawyug Market, Ghaziabad there is no dispute that the firm was registered in the relevant assessment year and forms used by it in making purchases from the opposite party were issued to the said firm. Merely because the purchases could not be verified from the accounts book of the purchasing dealer the selling dealer cannot be saddled with th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er to whom issued; (v) number of registration certificate; (vi) date from which it is effective. All these details have to be filled in by the officer who issued Form 3 - A to a registered dealer. That registered dealer then gives such forms to the selling dealer after filling in further details. There is no provision in the Act on the lines of Section 3 - B which makes a selling dealer liable for the tax if it is ultimately found that the Form 3 - A accepted by him are not genuine or have been misused. The liability of the selling dealer, who accepts Form 3 - A is only to check them to ensure that there is no defect on them which can be reasonably detected by an intelligent person. It is not his duty to ensure by all possible means that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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