- (1.) IN this case the applicant has been held liable to pay Central Sales Tax at the rate of 7% on his sales to unregistered dealers. The learned Sub-Divisional Officer as well as the learned Deputy Commissioner have both taken the view that since the applicant was not a 'registered dealer he was not entitled to pay tax at the preferential rate of 1% and was liable to pay the ordinary rate of tax at 7%. We cannot uphold this view. Sec. 8 (1) does not at all say that a dealer selling to a registered dealer must himself be a registered dealer in order to claim assessment at the preferential rate of 1%. For convenience of reference we reproduce this below: 8. Rates of tax on sales in the course of inter-State trade or commerce - " (1) Every dealer, who in the course of inter-State or commerce - (a) sells to the Government any goods; or (b) sells to a registered dealer other than the Govt. , goods of the description referred to in sub-section (3); shall be liable to pay tax under this Act, which shall be one percent of his turn-over. "
(2.) IT will be noticed that in the above provision the expression used is "every dealer" and not "every registered dealer", and it is not correct to restrict the meaning of the expression "every dealer", when in the same provision the expression "registered dealer" has also been used so as to draw a distinction between a 'dealer' and a 'registered dealer'. We, therefore, accept this application for revision and set aside the orders of the lower authorities in so far the applicant is sought to be taxed for his sales to a 'registered dealer or dealers at the higher rate of 7% and not the preferential rate of 1%. The Sales Tax Officer will now make a fresh assessment of the tax payable by the assessee at the rate of 1% on his sales to registered dealers in the course of inter-State trade. .;