DAGA METAL INDUSTRIES Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) The petitioner, Vivek Kumar Daga, is a registered dealer under the Bengal Finance (Sales Tax) Act. He is a manufacturer of metal containers and wire handles. He is also a registered dealer under the Central Sales Tax Act.

(2.) The petitioner was granted a provisional certificate on 8th September, 1977 by the Commissioner of Commercial Taxes under Rule 3(4)(ii) Of the Bengal Sales Tax Rules, 1941. The case of the petitioner is that this certificate was granted by the Commissioner because the Commissioner was satisfied that the petitioner had established the bona fide business for manufacturing goods in West Bengal for sale. One of the conditions of granting provisional certificate under Rule 3(4)(ii) was that the petitioner shall apply to the Commercial Tax Officer for registration within a week from the date when his total sales in respect of manufactured goods in a year exceeded Rs. 10,000 in value for 'the first time.

(3.) The provisional certificate under Rule 3(4)(ii) was renewed for the period 1st April, 1978 to 31st July, 1978 as production could not be started by the petitioner till 31st March, 1978. The case of the petitioner is that since the sales of the manufactured goods exceeded Rs. 10,000 in value, the petitioner made an application before the Commercial Tax Officer and registration was granted by the Commercial Tax Officer to the petitioner under the provisions of the Bengal Finance (Sales Tax) Act, as manufacturer of metal containers. It was noted in the proceedings for registration by the Commercial Tax Officer that the first sale of manufactured goods took place in the petitioner's factory on 27th April, 1978 after its production on 25th April, 1978.