- (1.) THE petitioner-firm is registered as a dealer under the Punjab General Sales Tax Act, 1948 (hereinafter referred to as the Act) and had submitted its quarterly returns for the year 1966-67 as required under Section 10 of the Act. The assessment for that year was made by the Assessing Authority, Amritsar, on 4th June, 1968. The said Authority accepted the returns of the petitioner-firm and created no liability on it. On 28th September, 1970, the Commissioner issued a notice under Section 21 (1) of the Act to the petitioner-firm to show cause why the deductions, which had been allowed by the Assessing Authority under Section 5 (1-A) of the Act, be not disallowed. The reason for this notice was that the petitioner-firm had purchased vegetable ghee manufactured by the Amritsar Sugar Mills Company Limited from Messrs. Rallia Ram Gurbax Rai-a firm of Tarn Taran-and Messrs. Krishan Lal Brij Mohan- a firm of Amritsar-both of whom were unregistered dealers. These two firms had furnished certificates in form ST XXII-A to the Assessing Authority to the effect that the vegetable ghee sold by them had suffered tax at the hands of the Amritsar Sugar Mills Company Limited, who are registered dealers in the State. The Assessing Authority was satisfied with these certificates. The Commissioner was however, of the opinion that the certificates, having been issued by the unregistered dealers, were not to be taken into consideration. Before the Commissioner, the petitioner-firm produced certificates in form ST XXII-A issued by the Amritsar Sugar Mills Company Limited wherein the tins of vegetable ghee sold by the company to the said two firms were mentioned along with their value, voucher numbers and dates of sales. It was also stated in the certificates that the said company was liable to tax on those sales under the Act and it would pay the same. The Commissioner refused to entertain those certificates on the ground that they should have been produced before the Assessing Authority, The Assessing Authority was satisfied with the certificates issued to the petitioner-firm by the two firms of unregistered dealers who had sold the ghee to the petitioner-firm and, therefore, the petitioner-firm was not called upon to further prove that those tins of vegetable ghee had borne sales tax at the stage of first sale by the manufacturers. Sub-section (1-A) of Section 5 of the Act authorises the State Government to issue a notification specifying the goods which will suffer sales tax at the first stage of sale and in pursuance of that power the Governor of Punjab issued Notification No. S. O. 76/p. A. 46/48/s. 5/66, dated 30th March, 1966, reading as under: In exercise of the powers conferred by Sub-section (1-A) of Section 5 of the Punjab General Sales Tax Act, 1948, the Governor of Punjab is pleased to direct that, with effect from the 1st April, 1966, the tax under Sub-section (1) of the said section shall be levied at the first stage of the sale of goods, namely) vegetable ghee, cement, bricks, molasses, arms and ammunition and motor vehicles including their chassis, motor cycle and motor cycle combinations, motor scooters and motorettes, which stage shall (a) In the case of a dealer who brings into the State of Punjab any such goods from any place outside that State, be the stage of sale when such dealer sells such goods for the first time within the State of Punjab ; (b) In the case of a dealer who manufactures such goods within the State of Punjab, be the stage of sale when such dealer sells such goods for the first time within the State of Punjab ; and (c) In the case of any other dealer who has not purchased such goods from a dealer referred to in the preceding clauses, be the stage at which such dealer sells such goods for the first time in the State of Punjab.
(2.) IN order to decide the controversy in this petition, it is also appropriate to set out Section 5 (1-A) of the Act and form ST XXII-A, Section 5 (1-A) reads as under: The State Government may by notification direct that in respect of such goods other than declared goods and with effect from such date as may be specified in the notification tax under Sub-section (1) shall be levied at the first stage of sale thereof; and on the issue of such notification the tax on such goods shall be levied accordingly: Provided that no sale of such goods at a subsequent stage shall be exempt from tax under this Act unless the dealer effecting the sale at such subsequent stage furnishes to the Assessing Authority in the prescribed form and manner a certificate duly filled in and signed by the registered dealer from whom the goods were purchased-Explanation.-For the purposes of this Sub-section, the first stage of sale in respect of any goods and in relation to any class of dealers shall be such as may be specified by the State Government in the notification.
(3.) THE form prescribed for furnishing the certificate is form ST XXII-A, which is as under: FORM ST. XXII-A (See Rule 29 (xi) of the Punjab General Sales Tax Rules. 1949) Certificate to be furnished by a dealer in respect of goods notified under Section 5 (1-A ). 1. I/we. . . (full address) holder of Registration Certificate No. . . dealer in. . . (specify the nature of goods) have sold. . . (goods ). . . (quantity) for Rs. . . . (value) to M/s. . . in my/our sale delivery order No. . . ,dated. . . . 2. I am/we are. . . in the State and shallba liable to the tax under the Punjab General Sales Tax Act, 1948 and I/we shall pay tax on the above sale. OR The above goods have already suffered tax at the hands of M/s. . . (full address) who are registered dealers in the State holding Registration Certificate No. . . and from whom I purchased them, vide the sale delivery order No. . . , dated. . . , for Rs. . . (value ). Signature of the selling dealer or his authorised agent.;