COMMISSIONER OF SALES Vs. AMIR BROTHERS

JUDGEMENT

(1.) THIS is a reference made by the Board of Revenue for getting an answer to the question:

(2.) THE facts on which this reference has been made are that the non-applicant dealer was assessed to sales tax, both under the M. P. General Sales Tax Act, 1958, and the Central Sales Tax Act, 1956, in respect of the period 5th November, 1964, to 24th October, 1965, though the dealer himself claimed that no part of his turnover during that period could be treated as turnover relating to inter-State trade. The assessing officer did not accept the contention and held that the dealer was liable to be assessed under the Central Act in respect of turnover of Rs. 37,840 and a penalty of Rs. 2,000 was also imposed under Section 18 (6) of the State Act for failure to get himself registered under Section 7 (1) of the Central Sales Tax Act. On first appeal, the quantum assessable under the Central Act was determined at Rs. 34,180. As regards the turnover with regard to the State Act, (sic) the Commissioner found that the figure of Rs. 34,180 is correct so far as the turnover for the Central Act is concerned. As regards the penalty, the appellate authority reduced it to Rs. 1,000. In second appeal, the assessment under the Central Act was accepted, but the order imposing penalty was set aside. The Commissioner of Sales Tax aggrieved by this order sought a reference to this Court.

(3.) REGISTRATION under Section 7 (1) and Section 7 (2) of the Central Sales Tax Act, 1956, is necessary in regard to different sets of circumstances. The section reads thus: