COMMISSIONER OF SALES TAX Vs. RAJJULAL MOTILAL, GUNA

JUDGEMENT

(1.) THIS reference under section 44 of the Madhya Pradesh General Sales Tax Act, 1958 is made by the Board of Revenue at the instance of the Commissioner of Sales Tax referring for opinion of the High Court the following question namely: - -

(2.) THE dispute in this case arises in respect of a turnover being sale of oil seeds for a sum of Rs. 19, 833 15. The oil -seeds were booked from Vidisha by M/s Rajmal Gulabchand and consigned to self at Raniganj. The same consignment was negotiated and sold to the assessee dealer. The non -applicant dealer furnished a declaration in Form C and M/S Rajmal Gulabchand furnished a declaration in Form E -I. The dealer while the goods were still in transit, transferred the goods to Krishna Flour and Oil Mill, Raniganj, Krishna Flour and Oil Mill has not furnished the declaration in Form C to its seller, the assessee.

(3.) IN Commissioner of Sales Tax, M.P. Shivnarain Jagat Narain [Misc Civil Case No. 22 of 1972 3.04.1978] Divisional Bench of this High Court considered the effect of omission to afurnish a declaration in Form 'C' obtained from the purchasing dealer by the selling dealer effecting the subsequent sale when such dealer had furnished a certificate in Form E -I. The Bench, ageeing with the view taken by the Madras High Court State of Madras v. P. Subbiah Pillai [, (1967) 20 STC 263] and State of Gujarat v. Yakubbhai [, (1969) SS 3 STC 117] held that form C is not a condition precedent for grant of exemption prescribed in sub section (2) of section 6 or the proviso therein as also in the rules framed by Central Government prescrbing the manner of the certificate required under rule 8 D framed by the State Government and, therefore, the furnishing ot such a declaration can not be construed to be mandatory. The requirement of furnishing declaration in Form 'C' incase of an exemption claimed under sub section (2) of section 6 can be only for the purpose of showing that the subsequent sale was an inter -Stale sale made to a registered dealer It is further held as under: - -