DEPUTY COMMISSIONER OF COMMERCIAL TAXES MADRAS Vs. MANOHAT BROTHERS MADRAS

JUDGEMENT

(1.) THE petitioner is a firm of dealers carrying oil business in "pump sets" machinery at Madras. They were assessed by the joint Commercial Tax Officer, harbour I, on the net turnover of Rs. 1,02,377, under the Central Sales Tax Act, for the year 1959-60. Of this turnover, Rs. 62,342 held liable to tax at the rate of 1 per cent. and Rs. 40,035 to tax at the rate of seven per cent. They preferred in appeal before the Appellate Assistant Commissioner of Commercial taxes, Madras, claiming that of the turnover of Rs. 40,035, Rs. 34,215 should be taxed only at the rate of one per cent. The joint Commercial tax Officer had levied the tax at the rate of seven per cent as the petitioner did not file the original form "c" as required by the Act, and the rules framed thereunder in respect of a few transactions, and as the C forms filled in respect of a few transactions were net duly and properly filled up. The petitioner produced certain letters before the appellate authority alleged to have been written from non-resident buyers outside the State to whom goods were sold but the appellate authority declined to act upon them. The petitioner's appeal was dismissed. They filed a further appeal before the Sales-tax Appellate Tribunal, Madras, and they reiterated their, claim that the turnover relating to the stun of Rs. 34215 Should Suffer tax only at the rate of one per cent. The Tribunal noted a mistake in regard to one transaction in respect of which the actual turnover was only Rs. 1640 though the petitioner claimed it to be for a sum of Rs. 16-50. The Tribunal acted upon the evidence produced by the Petitioner and took the view that the claim for the levy of tax at concessional rate was irresistible. The peti66ner was therefore granted relief on a turnover of Rs. 34205 which was to he assessed at one per cent instead of seven per cent. This revision petition has beer preferred by the State challenging the correctness of the said order of the Tribunal.

(2.) THE following tabular statement extracted from the order of the Tribunal gives the particular of the turnover and the reason for taxation at the enhanced rate of seven per cent. Invoice No. and date Turnover Reason for taxing at enhanced rate 1. 1545 d/- 3-4-59 Rs. 1650 No. C. form filed 2. 1549 d/- 21-4-95 Rs. 1440 do 3. 1553 d/- 4-6-95 Rs. 7750 Purpose not marked 4. 1565 d/- 6-9-95 Rs. 350 Date of Registration not marked 5. 1568 d/- 10-11-59 Rs. 1000 Purpose not marked 6. 1569 d/- 18-11-59 Rs. 400 Purpose not marked and registration date not found 7. 1574 d/- 3-2-60 Rs. 6750 Purpose not marked 8. 1575 d/- 12-2-60 Rs. 7000 Purpose not marked 9. 1577 d/- 17-3-60 Rs. 7000 Purpose not marked 10. 1578 d/- 18-3-60 Rs. 875 do do

(3.) IN regard to S. Nos. 1 and 2, the petitioner diet not file the prescribed C form before the assessing authority. It is alleged on their behalf that the C forms were misplaced and could not be traced in time to enable them to file them before the assessing authority at the proper time. In respect of S. No. 2 the original C form does not contain the date of registration of the buyer. The duplicate C form however shows that the date of registration was 18-7-1959, though the sale was effected on 21-4-1959. The concessional rate of taxation at the rate of one per cent, is provided for under S. 8 (1) of the Central Sales-tax Act. S. 8 (4) of the Act provides. that S. 8, sub-sec. (1) shall not apply to any sale in the course of inter-State trade or commerce unless the dealer selling the goods furnishes to the prescribed authority in the prescribed manner a declaration duly filled and signed by the registered dealer, to whom the goods are sold containing the prescribed particulars in a prescribed form obtained from the prescribed authority. The prescribed form is bite form C under the Central-Sales-tax (Registration and turnover) Rules. Rule 10 of the Central Sales-tax (Madras) Rules. 1957, provides that every registered dealer who wishes to purchase goods from another such dealer on payment of tax at the rate applicable under the Act to sales of goods by one registered dealer to another, shall obtain from the assessing authority blank declaration forms prescribed (C forms) for furnishing it to the selling dealer. Before furnishing the declaration to the selling dealer the purchasing dealer or any responsible person authorised by him in this behalf shall fill in all the required particulars in the form, and shall also affix his usual signature in the space provided for in the form for this purpose. Rule 5 of the Central Sale-tax (Madras)Rules provides that every dealer registered under S. 7 of the Act shall submit a return of his transactions in the course of interstate trade or commerce in form no. 1, together with the connected declaration form (C form) so as to reach the assessing authority on or before the 25th of each month showing turnover for the preceding month, and the amount or amounts collected by way of tax together with a chalan or crossed cheque in favour of the assessing authority for the payment of the tax due thereon under the Act. Rule 10 (2) provides that a registered dealer who claims to have made a site to another registered dealer shall in respect of such claim attach to his return in form no. 1, the portion marked "original" of the declaration received by him from the purchasing dealer (C form ). The Selling dealer way instead of attaching the form of declaration to the return in form I keep it in his custody subject to the condition that he maintains a register in form IX showing serially and chronologically the receipt at the forms of declaration from they purchasing dealers and submit all the forms of declaration relating to the year along with the last return in form I due for that year. The benefit of one per cent. under S. 8 (1) of the Act is conditional upon the assessee producing and furnishing the prescribed declarations form, in the prescribed manner. The language, of S. 8 (4) is express, explicit and mandatory as the words used are