C. S. P. Singh, J. - The judge (Revisions) Sales Tax, Lucknow has referred under section 11(3) the following question for our opinion :-
'Whether on the facts and in the circumstances of the instant case, the Judge (Revisions) was justified in law in partly accepting and partly rejecting the Form C No. C/1-901122 ?'
The question arises out of assessment proceedings for the year 1962-63. The assessee declared a turnover of Rs. 53,708/-. Benefit to reduced tax under section 8(1) of Central Sales Tax Act was claimed on a turnover of Rs. 45,527.24. The assessee filed a number of forms in respect of the transactions of sale. One such form related to three bills of the following amounted :-
The Sales Tax Officer held that inasmuch as this particular form was in respect of more than one transaction and of value of more than Rs. 5,000/-, benefit of the reduced rate of tax could not be given to the assessee on the basis of this form in respect of the transactions shown therein. The assessee preferred an appeal before the Assistant Commissioner. The Assistant Commissioner took the view that in as much as two transactions were less than Rs. 5,000/- relief in respect of these could be given. Relief in respect of the third transaction was however disallowed. The Commissioner Sales Tax preferred a revision against this decision. The Judge (Revisions) upheld the order of the Assistant Commissioner Sales Tax.
2. The Standing Counsel contented that in view of the proviso to rule 8(1-c) of the Central Sales Tax Rules, a single certificate could not cover more than one transaction where the total amount exceeded Rs. 5,000/-and as the certificate in question was in respect of three transactions and exceeded Rs. 5,000/-, the claim should have been rejected in toto.
The proviso to rule 8(1-c) reads as under. 'Provided that no single Declaration shall cover more than one transaction of sale, except in cases where the total amount covered by one Declaration is equal to or less than Rs. 5,000/- or such other amount as the Commissioner may, by a General Order, notify in the official Gazette.'
In the present case the declaration in Form C covered three transactions totalling more than Rs. 5,000/-. The result was that the assessee could not claim benefit of the declaration for all the three transactions shown in form C. But from that it does not follow that no benefit at all could be had by the assessee in respect of the two transactions shown in the declaration which were less than Rs. 5.000/-. Rule 8(1-c) or its proviso does not postulate the rejection of the declaration in its totality where more than one transaction is comprised in a declaration and exceeds Rs. 5,000/-. These rules have been framed in order to give effect to the provision of section 8(1) and (4) of the Central Sales Tax Act, which have been enacted for the benefit of a registered dealer who sells goods to another such dealer, and should therefore be construed in such a manner as to give relief to the assessee. Since two of the transactions were of the total value of less than Rs. 5,000/-, the declaration in Form C was valid in respect of these transactions, and the assessee could claim benefit of the declaration in respect of these transactions.
3. The view taken by the Judge (Revisions) appears to be correct.
4. We accordingly answer the question referred in the affirmative, in favour of the assessee and against the Department. As none has appeared on behalf of the assessee there will be no order as to costs.