STATE OF MAHARASHTRA Vs. SURESH TRADING COMPANY

JUDGEMENT

(1.) Mr V. B. Joshi states that he has filed his appearance for the respondents. It shall be taken on record.

(2.) The respondents were registered dealers under the Bombay Sales Tax Act, 1959. During the period 1/1/1967 to 31/12/1967 they purchased goods from M/s Sulekha Enterprises Corporation (hereinafter referred to as "sulekha Enterprises"). Sulekha Enterprises were also registered dealers under the said Act and the bills given to the respondents contained a certificate to the effect that the registration of Sulekha Enterprises was in force on the date of the sales. The respondents thereafter resold within the State of Maharashtra the goods purchased by them from Sulekha Enterprises. They claimed to deduct from their turnover of sales for the relevant accounting year the resales of the goods purchased from Sulekha Enterprises.

(3.) The Sales Tax Officer disallowed the respondents' said claim for deduction upon the ground that the registration of Sulekha Enterprises hadbeen cancelled on 20/8/1967, with effect from 1/1/1967, and that, therefore, on the dates on which the respondents had purchased the goods from Sulekha Enterprises, Sulekha Enterprises could not be said to be a registered dealer. The Sales Tax Officer also imposed a penalty upon the respondents. The appeal by the respondents to the Commissioner of Sales Tax was dismissed. They went up to the Maharashtra Sales Tax tribunal. It upheld the disallowance but ordered deletion of the penalty. On the application of the respondents, it stated the following question of law to the High court: