HEGDE, J. - (1.) THESE are assessees appeal by special leave, directed against the summary dismissal of its applications under Section 25 (2) of the Bihar Sales Tax Act, 1947 (to be hereinafter referred to as the Act). The question of law that the assessee wanted the High Court to direct the tribunal to state for its opinion is : 'Whether the refusal of the tribunal to allow the claim for deduction from the gross turnover on account of aggregate sales to registered dealers for reasons given by it is legally valid.'
(2.) THE assessee appellant is a registered dealer under the Act. The assessment with which we are concerned in these cases relate to the periods November 2, 1956 to March 31, 1957, 1957 -58, 1958 -59. The assessee was assessed to tax for the first two periods on September 20, 1957 and June 19, 1958 respectively. Subsequently on June 24, 1959 some of its books were seized and on the basis of the information got from those books, re -assessment proceedings commenced for the periods it was assessed. At the same time assessment proceedings for the period 1958 -59 were taken against it. In all those proceedings, the assessee claimed deduction from its taxable turnover, the turnover relating to its sales to registered dealers. This is claimed under the Explanation to Section 5 of the Act. The assessing authority rejected its contention holding that as those sales did not comply with the requirements of Rule 18 of the Rules framed under the Act, the assessee was not entitled to the deduction claimed by : Explanation to Section 5 reads thus : 'The expression taxable turnover, for the purposes of this section, means that part of dealers gross turnover on sales which have taken place in Bihar during any period, which remains after deducting therefrom - (a) * * * * (ii) sales to a registered dealer of goods specified in the purchasing dealers certificate of registration as being intended for re -sale by him or for use by him in the execution of any contract and on sales to a registered dealer of containers and other materials for the packing of such goods : Provided that where any goods specified in the certificate of registration are purchased by a registered dealers as being intended for resale by him or for use by him in the execution of a contract, but are utilised by him for any other purpose, the price of the goods so purchased shall be allowed to be deducted from the gross turnover of the selling dealer but shall be included in the taxable turnover of purchasing dealer.'
(3.) RULE 18 of the Rules framed under the Act reads : 'A dealer who wishes to deduct from his gross turnover the amount of a cash sale registered dealers shall produce, in respect of such a sale, the copy of the relevant cash memo, and true declaration in writing by the purchasing dealer or by such responsible officer as may be authorised in writing in this behalf by such dealer that the goods in question are specified in the certificate of registration of such dealer and are required by such dealer either for use in the execution of any contract or for resale.' ;