ASSESSING AUTHORITY PATIALA DISTRICT PATIALA Vs. PATIALA BISCUITS MANUFACTURERS PRIVATE LIMITED NOW DALMIA BISCUITS PRIVATE LIMITED

JUDGEMENT

(1.) The short question involved in this appeal on certificate, directed against a judgment of the High Court of Punjab and Haryana is:Whether the sales made to a dealer who has applied for registration under the Punjab General Sales Tax Act, 1948, before his application is allowed, are to be treated as sales to an unregistered dealer or registered dealer, when the registration is effected from the date of the application

(2.) M/s. Patiala Biscuits Manufacturers Pvt. Ltd. (hereinafter referred to as the assessees) appointed M/s. Rajpura Biscuit Company as their sole selling agents. The agents made an application on 1-1-1966 in the appropriate form for registration as a dealer under the Punjab General Sales Tax Act, 1948 (hereinafter called the Act). On the same day, the agents (referred hereafter as the purchasing dealer) made a similar application for obtaining registration certificate under the Central Sales Tax Act. The appropriate Assessing Authority accepted both these applications and on March 27, 1966 issued the registration certificate with effect from 1-1-1966.

(3.) The assessees filed their return for the quarter ending March 31, 1966 in April, 1966 and claimed deductions under Section 5 (2) (a) (ii) in respect of sales of the value of Rs.32,56,267.35 made by them between 1-1-1966 to 31-3-1966 to the purchasing dealer. The Assessing Authority, Patiala rejected this claim and assessed tax, amounting to Rupees 1,99,558.94, on the proceeds of the sales made by the assessees to the purchasing dealer between 1-1-1966 and 27-3-1966. The reason given by the Assessing Authority for refusing this relief to the assessees was that during this period, the purchasing dealer was not in possession of the registration certificate, the same having been issued only on March 27, 1966.