M/S Beheri Lal & Sons v. The State Of Punjab
GSTR No. 21 of 1997 [1]
IN THE HIGH COURT OF PUNJAB AND HARYANA
AT CHANDIGARH
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CORAM:
HON'BLE MR. JUSTICE AJAY TEWARI HON'BLE MR. JUSTICE AVNEESH JHINGAN
Present:
Mr. Sandeep Goyal, Advocate for the applicant. Mr. Pankaj Gupta, Additional Advocate General, Punjab. ...
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GSTR No. 21 of 1997 [2] The brief facts are that the assessee was engaged in trading of AC sheets, angles and hardware goods. For the assessment year 1983;84, returns were filed and the assessment was finalised on 2.2.1987. The order was taken up in revision on the ground that the goods purchased from the petitioner were not mentioned in the registration certificate of the purchasing dealer hence deduction under Section 5(2)(a)(ii) was dis; allowed vide order dated 31.3.1989. The revision filed before the Sales Tax Tribunal, Punjab (for short, 'the Tribunal') was dismissed on 28.6.1993. Before dealing with the question, relevant provisions are reproduced below:
"/0 10101 "% /%+2%344 xx xx xx
(2) In this Act the expression 'taxable turnover' means that part of a dealer's gross turnover during any period which remains after deducting therefrom;;
(a) his turnover during that period on;;
xx xx xx (ii) sales to a registered dealer of goods other than sales of goods liable to tax at the first stage under sub;section (1A), declared by him in a prescribed form as being intended for resale in the State of Punjab or sale in the course of inter;State trade or commerce or sale in the course of export of goods out of the territory of India or of goods specified in his certificate of registration for use by him in the manufacture in Punjab of any goods other than goods declared tax;free under section 6,
GSTR No. 21 of 1997 [3] for sale in Punjab or sale in the course of inter;State trade or commerce or sale in the course of export of goods out of the territory of India and on sales to a registered dealer of containers or other materials for the packing of such goods: PROVIDED that in case of such sales, a declaration duly filled up and signed by the registered dealer to whom the goods are sold and containing prescribed particulars on a prescribed form obtained from the prescribed authority is furnished by the dealer who sells the goods.
xx xx xx" Rule 26 of the Punjab General Sales Tax Rules, 1949 (for short, 'the Rules'), form ST;IV and form ST;XXII are also reproduced below: "
RULE;26
(1) Any dealer, who wishes to deduct from his gross turnover the amount in respect of sale on the grounds that he is entitled to make such deduction under the provisions of sub;clause (ii) of clause (a) of sub;section (2) of section 5, shall obtain a declaration duly filled in and signed by the purchasing dealer or his agent, as prescribed under rule 55;A.
(2) The selling dealer shall prove to the satisfaction of the assessing authority, the genuineness of his claim by producing the said declaration in respect of sale of such goods at the time of assessment or when called upon to do so, by notice, by a competent authority under the Act.
GSTR No. 21 of 1997 [4] 2 .* 5 6 (See rule 5 of the Punjab General Sales Tax Rules, 1949) ______________District This is to certify that the firm known as _________ whose head office in Punjab is situated at __________ has been registered as a dealer under the Punjab General Sales Act, 1948. 2.
The business is :;
Wholly Mainly Partly Partly Partly 3.
The dealer has additional places of business and warehouses at the addresses noted below:
4.
The sale of the following goods other than goods liable to tax at the first stage of sale under section 5(1;A) made to this dealer for use by him in the manufacture in the State of Punjab of any goods, other than goods declared tax;free under setion 6, for sale in Punjab will be free of tax.
5.
The return in form S.T. VII pertaining to the entire business conducted at the various places of business of the dealer shall be furnished by the dealer from the head office quarterly/monthly.
6.
The tax is payable quarterly/monthly.
7.
This certificate is valid from __________until cancelled. Seal of Assessing Signature Authority Assessing Authority Dated ___________ ____________District ___________________________________________________ _ Notes -
(1) This registration certificate shall be displayed by the dealer at the place of business and it shall be produced for inspection on demand by any person exercising authority under the Act and these rules.
(2) Any change in the name of the firm should be notified within 30 days and the registration certificate got amended accordingly.
___________________________________________________
GSTR No. 21 of 1997 [5] 2 433..
DECLARATION A. (Counterfoil to be retained by the purchaser) B. (To be retained by the seller) C. (To be furnished by te selling dealer to the Assessing Authority with the return) FORM ST.XXII FORM ST.XII FORM ST. XII (See rules 26 and 27;A (See rules 26 and 27;A) (See rules 26 and 27;A) ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ;
;
; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ;
R.C. No.;;;; dated;;;;;;
Issued to M/s _________ R.C. No.;;;;; Dated ;;;;;;;;
I hereby declare that I have purchased the goods detailed overleaf for Rupees ;;;;; (Rs.;;;;only) from M/s ;;;;;;;;; R.C.
No.;;;;;; dated;;;;;;;
for the purpose mentioned below:;
I hereby declare that I have purchased the goods detailed overleaf for Rupees ;;;;;(Rs.;;;;;;;;only) from M/s. ;;;;;;;;; R.C. No.;;;;;;;
dated;;;;; for the purpose mentioned below:;
R.C.
No.__________ U N R R U P S U N R R U P S dated _____________
(1) Use in the manufacture in Punjab of goods, other than goods declared tax;
free under section 6 for sale in Punjab; or on _____________
(1) Use in the manufacture in Punjab of goods, other than goods declared tax;free under section 6 for sale in Punjab; or for goods valued at
(2) Re;sale in the State of Punjab; or
(2) Re;sale in the State of Punjab; or Rs.___________ _
(3) Sale in the course of inter;State trade or commerce; or
(3) Sale in the course of inter;State trade or commerce; or Under Rupees
(4) Sale in the course of export out of the territory of India.
(4) Sale in the course of export out of territory of India.
No.
And the goods so purchased have actually moved into my custody and have duly been entered into my books of account and goods purchased for the purpose mentioned at (1) above are duly specified in my registration certificate No.;;;;;;
And the goods so purchased have actually moved into my custody and have duly been entered into my books of account and goods purchased for the purpose mentioned at (1) above are duly specified in my registration certificate No.;;;
Signature of the Purchasing dealer Signature of the Purchasing Dealer ↑ Please tick which is applicable ↑ Please tick which is applicable
GSTR No. 21 of 1997 [6] REVERSE Memo No.
and date issued by selling registered dealer Descriptio n of goods Quantity Price Memo no. and date issued by selling registere d dealer Description of goods Quantit y Price Total Total Section 5 of the Act prescribes rate of tax. Sub;section (2) thereof provides for calculation of 'taxable turnover'. In the eventualities mentioned in the sub;clauses, the deduction is to be made from the gross turnover and net would be the taxable turnover. To decide the present issue, sub;section (2)(a)(ii) to Section 5 of the Act would be relevant.
It provides that sales made to a registered dealer of the goods (except goods taxable at first stage) intended to be re;sold in Punjab or in the course of inter;State trade or commerce or to be exported out of India or the goods specified in the registration certificate of the purchaser for use in manufacture of goods, for sale are to be deducted from the gross turnover. Rule 26 prescribes the procedure for availing deduction under Section 5(2)(a) of the Act and provides for furnishing of declaration in form ST;XXII. Form ST;IV is the proforma of registration certificate, its Clause 4 gives the details of goods the dealer is entitled to purchase for use in manufacture. Form ST; XXII is the prescribed declaration form to be issued by the purchasing dealer to the selling dealer for claiming deduction under Section 5(2)(a).
GSTR No. 21 of 1997 [7] The declaration form mentions four purposes for which the goods are intended to be purchased.
It is not disputed that the purchasing dealers were registered dealers and that in most of the declaration forms the purpose for purchase was not tick;marked. The claim of the petitioner was rejected holding that the goods sold were not specified in the registration certificate. We are not in agreement with the view taken. From the provisions quoted above, it is evident that deduction is allowed of sales made to the registered dealer, of goods for resale or goods mentioned in registration certificate for use in manufacture of goods for sale. From the Clause 4 of form ST;IV, it is clear that only the goods which can be purchased for use in manufacture are mentioned, there is no list of goods intended to be re;sold.
The deduction cannot be disallowed for non;specification of goods in the registration certificate where the dealer is registered for re;sale or is involved in trading also. The position would be different if the dealer is not registered for trading, in that case even non;scoring of purpose of purchase would be of no relevance as in such eventuality, only the goods specified in the certificate of registration can be purchased for use in manufacture.
In view of the above, the question is answered accordingly. 0%*++,-,.%1 0%-%7+8%.1 -9+-9+ February 19, 2020 mk Whether speaking/reasoned:
Yes/No Whether reportable:
Yes/No