COMMISSIONER OF SALES TAX Vs. KASHI PRASAD KESHRILAL

JUDGEMENT

(1.) THIS is a reference u/sec., 44 of the M.P. General ST Act, 1958, by the Board of Revenue, M.P., Gwalior, at the instance of the CST, M.P. , referring a certain question of law said to arise out of its order in ST Appeal No. 271-IV/68, dt. 12th June, 1970, to the High Court for its opinion, namely :

(2.) THE question, in the present case, is not whether the goods sold in Form XII-A were, in fact, used by the purchasing dealer for the manufacture of other goods for sale, but whether it is the responsibility of the selling dealer for claiming the concessional rate of 1 per cent under s.8(1) of the M.P. General ST Act, 1958 to satisfy himself that the goods mentioned in the declarations in Form XII-A obtained by him were, in fact, mentioned in the registration certificate of the purchasing dealer. THE Tribunal has discussed this point and adverted to the decision of the Supreme Court in THE State of Madras vs. Radio and Electricals Ltd. & Anr. 1966 18 STC 22 (SC) and that of this Court in THE CST, M.P. vs. Samaj Paper Mart, Ranipura, Indore 1968 21 STC 239 (MP) and has come to the conclusion that the selling dealer cannot be denied the advantage of the concessional rate at 1 per cent merely because the goods are subsequently found not to have been entered in the registration certificate of the purchasing dealer.

(3.) RECENTLY, a Full Bench of this Court in CST, M.P. vs. Lalloo Bhai B. Patel & Co. Ltd., Sagar M.C.C. No. 201 of 1970, of M.P. High Court Decided on 9th Oct., 1975, has tried to distinguish the decision in The CST, M.P. vs. Samaj Paper mart Ranipura, Indore 1968 21 STC 239 (MP) and that of their Lordships in The State of Madras vs. Radio and Electricals Ltd., and Anr. 1966 18 STC 22 (SC), as casting a duty on the selling dealer, while obtaining declaration in Form XII-A from the purchasing dealer for the purpose of claiming the concessional rate of tax under s.8(1) of the Act, to satisfy himself that the goods purchased as raw material were, in fact, entered in the registration certificate of the purchasing dealer. In reaching that conclusion, the Full Bench has observed :-