# MADRAS v. RADIO & ELEOT!\ICALS LTD. (Shah, J,)

- **Citation:** [1966] Supp. 1 S.C.R. 198
- **Court:** Supreme Court of India
- **Decided:** 1963-11-04
- **Case number:** Civil Appeals Nos. 334, 335 and 338 of 1965
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/madras-v-radio-eleot-icals-ltd-shah-j-3840
- **Pages:** 11

## Headnote

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MADRAS V. RADIO & ELEOT!\ICALS LTD. (Shah, J,)
199
It is contemplated in sec. 7 and the Rules that the certificate of
registration may only be issued after an objective satisfaction by the
notified authority that the spec1fi0d goods are l!kely to be needed ior
the purpose of business of the registered dealer, and that satsfaction is open to challenge in an appropnate proceedmg before the
High Court and even before this Court. Correctness or propriety of
satisfaction of the notified authority in issuing the certificate in
Form 'B' that the goods are likely to be required for the purpose of
the business would not however be again open to challenge before
another taxing authority in proceedings for assessment of tax.
[206 G-207 BJ.
Indian Copper Corporation Ltd, v. Commissioner of Commercial
Taxes, Bihar & Others 16 S.T.C. 25~ and J.K. Cottoro Spinning
&
Weaving Co. Ltd. v. The Sales Tax Officer, Kanpur & Another 16
S.T.C. 563, referred 1to.

## Text

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MADRAS V. RADIO & ELEOT!\ICALS LTD. (Shah, J,)
199
It is contemplated in sec. 7 and the Rules that the certificate of
registration may only be issued after an objective satisfaction by the
notified authority that the spec1fi0d goods are l!kely to be needed ior
the purpose of business of the registered dealer, and that satsfaction is open to challenge in an appropnate proceedmg before the
High Court and even before this Court. Correctness or propriety of
satisfaction of the notified authority in issuing the certificate in
Form 'B' that the goods are likely to be required for the purpose of
the business would not however be again open to challenge before
another taxing authority in proceedings for assessment of tax.
[206 G-207 BJ.
Indian Copper Corporation Ltd, v. Commissioner of Commercial
Taxes, Bihar & Others 16 S.T.C. 25~ and J.K. Cottoro Spinning
&
Weaving Co. Ltd. v. The Sales Tax Officer, Kanpur & Another 16
S.T.C. 563, referred 1to.
CIVIL APPELLATE JURISDICTION: Civil Appeals Nos. 334,
335 and 338 of 1965.
Appeals by Special Leave from the judgment and orders
dated January I, 1963, November 7, 1962 and November 4, 1963
of the Madras High Court in Tax Case No. 170 of 1961 Civil Revision Petition No. 105 of 1961 and Tax Case No. 153 of 1963 resD
pectively.
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Bishan Narain and A. V. Rang am, for the appellants (in
C.As. Nos. 334 and 335 of 1965).
A. V. Rangam, for the appellant (in C.A. No. 338/1965).
K. R. Chaudhuri, for the respondent (in C. A. No 334/1965).
N. D. Karkhanis, O.C. Mathur, J.B. Dadachanji and Ravinder
Narain. for the respondents (in C.As. Nos. 335 and 338/1965).
The Judgment of the Court was delivered by
Shah. J. This is a group of appeals filed by the State of
Madras against orders passed by the High Court of Judicature at
Madras which raises the following common question as to appli·
cability of concessional rate of sales tax to transactions of interState sale and taxable under the Central Sales Tax Act, 1956:
"When a purchasing dealer in one State furnishes in
Form 'C' prescribed under the Central Sales Tax (Registration & Turnover) Rules, 1957, to the selling dealer in another
State a declaration, certifying that the goods ordered, purchased or supplied are covered by the certificate Clf registration obtained by the purchasing dealer in Form 'B' prescribed under r. 5(1) of the Central Sales Tax (Registration &
Turnover) Rules, 1957, and that the goods are intended for
resale, or for use in manufacture of goods for sale, or for nse
in the execution of contracts, or for packing of goods for
resale, and that declaration is produced by the selling dealer,
is it open to the Sales Tax authority under the Central Sales
Tax Act to deny to the selling dealer the benefit of concessional rates under s. 8(1) of the Central Sales Tax Act, 19S6.
J,IS5SCI-15
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SUPREME OOURT REPORTS
(1966] SL'PP. B.O.R,
on the view that the certificate in Form 'C' mentions more
purposes than one for which the goods arc intended to be used,
or that the goods are incapable of being used for the purpose
for whic~ they are declared to be purchased, or that the goods
are applied for some other purpose not mentioned in the certificate in Form 'C'?''
We may briefly set out the facts which give rise to two out of
the appeals: Civil Appeals Nos. 334 & 335 of 1965.
Civil Appeal No. 334 of 1965. MI s Radio & Electricals Ltd.,
respondents in this appeal-<:arry on business in the State of
Madras in electrical equipment and are registered as dealers under
the Central Sales Tax Act. The Bombay State Electricity Board,
Saurashtra Division, which is engaged in the production of electric
energy purchased transformers and other goods of the total value
of Rs. 1,42,020/- from Mis. Radio & Electricals Ltd. and the
latter claimed in proceeding for assessment for Central sales-tax for
the year 1957-58 that they were liable to pay tax at the rate of I
per cent on the turnover under s. 8(1) of the Central Sales Tax Act.
The Deputy Commercial Tax Officer rejected the claim on the
ground that the Bombay State Electricity Board was not a dealer
engaged in selling goods and merely because they held a registration certificate, the goods sold to the Board could not be admitted
to the concessional rate of tax under s. 8(1) of the Act. The Appellate Assistant Commissioner of Commercial Taxes confirmed the
order on the ground that transformers and other goods purchased
by the Electricity Board for use in the production of electrical
energy were not intended to be used in the manufacture of goods
for sale within the meaning of s. 8(3) (b) of the Central Sales Tax
Act, because electricity was not at the material time "goods" within
the meaning of the Act. The order passed by the Appellate A<iSistant Commissioner was confirmed by the Sales Tax Appellate Tribunal, Madras. The High Court, follawing an earlier judgment in
Deputy Commissioner of Commercial Taxes, Madras Division, v.
Manohar Brothers(') modified the order holding that if the selling
dealer within the State produces a certificate in Form 'C' setting
out one or more of the purposes in s. 8(3)(b) of the Act, and if the
Sales Tax authorities on behalf of the State do not deny that th.;
purchasing dealer is a registered dealer, the selling dealer will not
be denied the concessional rate of tax under the Act, even if it
transpires that the purchasing dealer has utilised the goods for
purposes other than those mentioned in the certificate of registration. The High Court then held that out of the certificates in
Form 'C' produced by the selling dealer, certificates in respect of
a turnover of Rs. 42,080 /. set out the purpose as "manufacture of
electrical energy" and since this was not one 0f the purposes mentioned in s. 8(3)(b) of the Act as it stood at the relevant time, the
Sales Tax authority was right in denying the benefit of the rate
under s.
8(1) to the assessee. but with regard to a turnover of
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Ill 13 8.T.O. 686.
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MADRAS v. RADIO & ELECTRICALS LTD. (Shah, J.)
201
Rs. 47,340 / - the Sales Tax authority was bound to accept the
certificates in Form 'C' produced by the assessee even though the.
certificates contained all the purposes mentioned in the prescribed form, and no purpose was struck out.
The facts which give rise to Civil Appeal No. 335 are these;
Mis Stanes Motors (South India) Ltd.-respondents in this appeal
-are dealers in automobiles, tractors and spare parts. For the
year 1957-58 they claimed benefit of concessional rates under s.
8(1) on a turnover of Rs. 1,38.572/12/- resulting from sale of tractors supplied to certain "tea factories" in the State of Kerala. The
purchasing dealers who were four "tea factories" registered as
dealers under the Act delivered to the respondents certificates in
Form 'C' declaring that the tractors purchased by them were in·
tended for use in the manufacture of tea for sale. In the view of
the Tax Officer benefit of the concessional rate could not be claimed in respect of those sales, since the tractors were not for resale
and the tractors "were not directly relatable to the manufacturing
process". In appeal, the order passed by the Tax Officer was confirmed by the Appellate Assistant Commissioner. He held that the
tractors which were used for transporting tea leaves from the plantations to the factories cannot be said to be used in the manufacture of goods for sale. In appeal to the Sales Tax Appellate Tribunal, it was held that the respondents were entitled to the concessional rate in respect of sales to two out of the four factories, which
held certificates of registration in Form 'B' specifying "machinery"
as one of the items under s. 8(3)(b). The High Lourt of Madras
confirmed the order passed by the Tribunal in exercise of its revisional jurisdiction.
Counsel for the State of Madras contends that the Commercial Tax Officer is invested with authority under the Act to scrutinise the transactions in respect of which the claim to concessional
rate of tax is made, and he is competent to ascertain not only
whether the certificate in Form 'C' is genuine, but whether the
certificate is valid in law, whether the purchasing dea'er holds a
valid certificate of registration in Form 'B', whether the goods
specified in the purchasing dealer's certificate can be used for the
purpose mentioned in the certificate in Form 'C', and whether the
goods were applied for the purpose for which they were purchased. Counsel also submitted that a certificate in Form 'C' which
specifies more purposes than one for which the goods are intended
to be used by the purchasing dealer is invalid.
We may in the first instance set out the relevant provisions of
the Act and the Rules. The Central Sales Tax Act 7 4 of 1956 was
enacted by the Parliament to formulate principles for determining
when a sale or purchase of gocds takes place in the course of interH
State trade or commerce or outside a State or in the course of import into or export from India. By Ch. II principles for determining when a sale or purchase of goods takes place in the course of
L/85SCI-15(al
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fl966] Sl'PP. s.c.R.
inter-State trade or commerce or outside a State or in the course
of impon or export are enacted. Chapter III deals with inter-Stllte
sales tax. By s. 6 liability is imposed upon every dealer to pay tax
under the Act on all s.1les effected by him in the course of interState trade or commerce during any year. Section 7 provides for
registration of dealers. Section 8. as originally enacted, provided:
"(!) Every dealer who. in the course of inter-State trade
or commerce sells to a registered dealer goods of the descrip·
tion referred to in sub-section (3) shall be liable to pay tax
under this Act, which shall be one per cent of his turnover:
Provided that, if under, the sales tax law of the appropriate State, the sale or purchase of any goods by a dealer is
exempt from tax generally and not in specified cases or in
specified circumsttnces or is subject to tax (by whatever name
called) at a rate or rates which is or are lower than the rate
specified in sub-section (I), the tax payable under this Act on
the turnover in relation to the sale of such goods in the course
of inter-State trade or commerce shall be nil or shall be calculated at the lower rate. as the case may be.
(2)
(3) The goods referred to in sub-section W- -
(a) in the case of declared goods. are goods of the class or
classes specified in the certificate of registration of the registere<I dealer purchasing the goods as berng intended for resale by him; and
(b) in any other case, are good> of the class or classes specified in the certificate of registration of the registered dealer
purchasing the goods as being intended for res~le by him or
for use by him in the manufacture of goods for sale or for
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use by him in the execution of any contract; and in either
case include the containers or other materials used for the
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packing of goods of the class or classes of goods so specified.
Explanation-
(4) The provisions of sub-section (I) shall not apply to
any sale in the course of inter-State trade or commerce unlCS6
the dealer selling the goods t:urnishes to the prescribed authority in the prescribed manner a declaration duly filled and
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signed by the registered dealer to whom the goods are sold,
containing the prescribed particulars on a prescribed form
obtained from the prescribed authority.
(5)
(With effect from October I, 1958, by Act 31 of 1958, s. 8 was exR
tensively amended, but we are. in these appeals. not concerned
v.ith the statute as amendedl.
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MADRAS 'V. RADIO & ELECTRICALo LTD, (8hah, J.)
203
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Section 10 provides for penalties, The section at the material time
provided:-
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" If any person-
(a) fails to get himself registered as required by section
7; or
(bl being a registered dealer. falsely represents when purchasing any class of goods that goods of such class are covered by his certificate of registration; or
(c) not being a registered dealer, falsely represents when
purchasing goods in the course of inter-State trade or commerce that he is a registered dealer; or
(d) after purchasing any goods for any of the purposes
specified in clause (b) of su!J..section (3) of section 8 fails, without reasonable excuse. to make use of the goods for any such
purpose;
(e) has in his possession any form prescribed for the purpose of sub-section (4) of section 8 which has not been obtained by him or by his principal or by his agent in accordance
with the provisions of this Act or any rules made thereunder;
he shall be punishable with simple imprisonment.
Section 14 deals with declared goods in respect of which by s. 8(1)
read with s, 8(3)(a) the concessional rate of tax applies when the .
goods are purchased as being intended for resale. Reading s. 8(1)
with s, 8(3)(b), it is clear that the Legislature intended to grant the
benefit of concessional rates of tax under the Act to registered
dealers, provided that the goods sold were of the class or classes
specified in the certificate of registration of the purchasing dealer
and the goods were intended to be used for re-sale by him or for
use in the manufacture of goods for sale, or for use in the execution of contracts, or for packing of goods for resale,
In exercise of the power under s. 13 the Central Government
made rules called "The Central Sales Tax (Registration & Turnover) Rules, 1957". Rules 3 to 8 provide for registration and issue
of certificate of registration. Rule 5(1) provides that when the
notified authority is satisfied, after making such enquiry as it thinks
necessary, that the particulars contained in the application are correct and complete, it shall register the dealer and grant him a certificate of registration in Form 'B' and also a copy of such certificate
for every place of business within the State other than the principal place of business mentioned therein, The material part of Form
'B' is as follows :
This is to certify that . , ,. , ... ,. . ,. . ,. ,. . ,. . ,. , ,. .. ,. ..... whose
principal place of busin~s .within the State of . ,. ,. . ,. ,. ,. ,. , ,, ..... ..
,. ,. .... ,. ................ ,, .. ts situated
at ..... ,. ",.,,.,. .,. .. ,. ......... .
BUPREMB COURT REPORTS
(1966) BUPP. s.o.R.
has been registered as a dealer under section 7(1) /7(2) of the
Central Sales Tax Act, 1956.
The business is:
wholly
mainly
partly
partly
partly
The class(es) of goods specified for the purpose of subsection (!) of section 8 of the said Act is I are as follows and
the sales of these goods in the course of inter-State trade to
the dealer shall be taxable at the rate specified in that subsection subject to the provisions of sub-section (4) of the said
section:-
(a) For resale, (b) For use in manufacture,
(c) For use in the execution of contracts.
The dealer's year for the purpose of accounts runs from
........................ day of ........................ to the ........... .
day of .............................. ".
Rules 9 & 10 deal with cancellation of registration, and Rules 11
& 12 deal with determination of turnover. By r. 12 the declaration
referred to in sub-s. (3) of s. 8 of the Act has to be in Form 'C'
consisting of three sections-a counterfoil, a
duplicate and the
original. -The duplicate section of the Form (which in terms is
identical with the original section) is as follows:
"Form 'C'-Form of Declaration
(See rule 12).
(to be used at the time of making purchases from out of State
sellers).
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Name of issuing State .. . .. .. .. .. . . .. . . . . . . . . . .. .. . . . . . .. .. .. . . . .. . . . .
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Issued to holder of Registration Certificate No ............ _ ..... .
Serial No. . ............................... .
To
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (Seller)
...............
Certified that the goods
••ordered for in our purchase order No .......... dt .. _ ......... _
•Purchased from you as per bill/cash memo stated below.
Supplied under your cha Ian No. _ .... _ ......... dated _ .......... .
are for
.. resale
••use in manufacture of goods for sale/use in the execution
of contracts/packing of goods for resale.
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MADRAS v. RADIO & ELECTRICALS LTD. (Shah, J.)
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and are covered by my J our registration certificate No ......... .
dated ............... issued under the Central Sales Tax Act, 19!56.
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(Name of the purchasing dealer in full).
···/···························
(Signature and status of the person signing the declaration).
*Particulars of Bill I Cash Memo . . . . . . . . . . . . . . . . . . . . . . . . . . . Dated
..................... iNo.
. . . . . . . . . . . .. . . . . . . . . . . . Amount ........... .
**Strike out whichever is not applicable.
(Note-To be retained by the selling dealer)".
The Scheme of the Rules read with the Act is that the purchasing dealer as well as the selling dealer must register themselves
under the Central Sales Tax Act. If declared goods are specified in
the certificate of registration of the purchasing dealer and if it be
certified that the goods are intended for resale by him, the sale is
subject to concessional rate of tax under s. 8(1). In respect of sales
of other classes of goods specified in the certificate of registration
of the purchasing dealer, if the goods are purchased either for resale by him, or for use in manufacture of goods for sale, or for use
in the execution of contracts, the concessional rate of tax is available, provided the selling dealer obtains from the purchasing dealer
the declaration in the prescribed form duly filled in and signed by
the latter containing the particulars that the goods are ordered,
purchased or supplied under a certain specific order, bill or cash
memo or chalan, for all or any of the purposes mentioned and that
the goods are covered by the registration certificate of the purchaser described therein and issued under the Act. If the certificate is
defective in that it does not set out all the details, or that it contains
false particulars about the order, bill, cash memo or chalan, or
about the number and date of the registration certificate and specifications of goods covered by the certificate of the purchasing
dealer, the transaction will not be admitted to concessional rates.
Now in certain certificates in Form 'C' furnished by the purchasing dealer in this group of appeals all the alternatives in the
printed form were retained, and in others one or more but not all
the alternatives were retained. Counsel for the State of Madras
urged that a certificate in Form 'C' is defective unless it specifie~
only one purpose for which the goods purchased a.re intended to
be used. But that contention is not borne out by tb.e Act and the
Rules. Goods may be sold to a purchasing dealer under a. single
order, bill, cash memo or chalan, one part to be usea for resale,
another to be used in the execution of contracts, and the rest in
manufacture of goods for sale, but it is not enacted that separate
certificates should be issued each relating to the quantity intended
to be used for a specified purpose. A purchasing dealer may again
be carrying on business as a, manufacturer, as a building, installation or repair contractor, and as a dealer in goods, and if he purchases goods specified in his certificate, but without making up hi5
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[ 1966] St:PP. S.C,R.
min~ about .the precise purpose for which the goods will be used,
provided 1t ts one .of the purposes, he will still be complying with
the statutory requirements 1f he declared in Form 'C' that the
goods arc purchased for more than one purpose. The Act and the
Rules do not impose an obligation upon the purchasing dealer to
declare that goods purchased by him are intended to be used for
one purpose only. even though under his certificate of registration
he is entitled to purchase goods of the classes mentioned ins. 8(3)(bl
for more purposes than one. When the purchasing dealer furnishes
a certificate in Form 'C' without striking out any of the four alter·
natives, it is a representation that the goods purchased are intended
to be used for all or any of the purposes, and the certificate complies
with the requirements of the Act and the Rules. The Sales Tax
authority is, of course, competent to scrutinise the certificate to
find out whether the certificate is genuine. He may also, in appropriate cases, when he has reasonable grounds to believe that the
goods purchased arc not covered by the registration certificate of
the purchasing dealer. make an enquiry about the contents of the
certificate of registration of the purchasing dealer. But it is not for
the Tax Officer to bold an enquiry whether the goods specified in
the certificate of registration of the purchaser can be used by him
for any of the purposes mentioned by him in Form 'C', or that the
goods purchased have in fact not been used for the purpose declared in the certificate.
The authority issuing the certificate under r. 5(1). as expressly
stated in the rule, has, before issuing a registration certificate, to
be satisfied after making such enquiry as it thinks necessary that
the particulars contained in the application are correct and com·
plete. The enquiry would obviously be made in the light of the
nature of the business and goods which are likely to be needed
either for re-sale, or for use in the manufacture of goods for sale,
or for use in the execution of contracts. Satisfaction which is con·
templated by r. 5 is objective, and may be arrived at upon a quasi.
judicial enquiry. This Court has in several cases had occasion to
consider the legality of orders of the notified authority refusing
to grant certificates of registration in Form 'B' in respect of cer·
tain classes of goods which it was claimed by the tax-payer were
nccessarv for the purpose of his business and were thcrefoce re·
quested to be specified in the certiftcate of registration: e.g. Indian
Copper Corporation Ltd. v. Commissioner of Commercial Taxe.1.
Bihar & Others(') and J. K. Cotton Spinning & Weaving Co. Ltd ..
v. The Sales Tax Officer. Kanpur & Another('). On the plain words
used in s. 7 and the Rules, it is contemplated that the certificate of
registration mav only be issued after an objective satisfaction by
the notified authority that the specified goods are likelv to be
needed for the purpose of the business of the registered dealer, and
that satisfaction is open to challenge in an appropriate proceeding
before the High Court and even before this Court. Correctness or
(11 R.T.C. 259.
('I [19661 ll. 8 0.R. <lOO; IO S.T.C. r.n1.
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MADRAS V. RAO!O & ~LBCTRIUAL' LTJJ. (8/ia/i, J.)
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propriety of satisfaction of the notified authority in issuing the certificate in Form 'B' that the goods are likely to be required for the
purpose of the business would not however be again open to challenge before another taxing authority in proceedings for assessment
of tax. If therefore gocds are specified in the certificate of registration in Form 'B'. it is not open, when a claim is made in respect of
the purchases of those goods for the application of concessional
rate of tax, to the Sales Tax Officer to deny to the selling dealer of
those goods the benefit on the ground that the goods specified cannot be used by the purchasing dealer for the purpose of his business. It is open to the Tax Officer to ascertain whether the goods
in respect of which a claim for concessional rate is made are specified in the certificate of registration. but if the class of goods is included in the certificate of registration in Form 'B' he cannot say
that the class of goods should not hwe been specified.
The ,\ct seeks to impose tax on transactions, amcngst others,
of sale and purchase in inter-State trade and commerce. Though the
tax under the Act is levied primarily from the seller, the burden
is ultimately passed on the consumers of goods because it enters
into the price paid by them. Parliament with a view to reduce the
burden on the consumer arising out of multiple taxation
has,
in respect of sales of declared goods which have special importance in inter-State trade or commerce, and other c'asses of
goods which are purchased at an intermediate stage in the stream
of trade or commerce, prescribed low rates of taxation, when transactions take place in the course of inter-State trade or commerce.
Indisputably the seller can have in these transactions no control over
the purchaser. He has to rely upon the representations made to
him. He must satisfy himself that the purchaser is a registered
dealer, and the goods purchased are specified in his certificates: but
his duty extends no further. If he is satisfied on these two matters.
on a representation made to him in the manner prescribed by the
Rule; and the representation is recorded in the certificate in Form
'C' the selling dealer is under no further obligation to see to the
application of the gooc!s for the purpose for which it was represented that the goods were intended to be used. If the purchasing dealer
misauplies the go~ds he incurs a penalty under s. 10. That penalty
is incurred by the pu"chasing dealer and cannot be visited upon the
selling dealer. The selling dealer is under the Act authorised to
collect from the purchasing dealer the amount payable by him as
tax on the transaction, and he can collect that amount only in the
light of the declaration mentioned in the certificate in Form 'C'.
He cannot hold an enquiry whether the notified authority who issued the certificate of registration acted p:·operly, or ascertain whether
the purchaser, notwithstanding the declaration, was likely to use
the gc·ods fer a purpose other than the purpose mentioned in the
certificate in Form 'C'. There is nothing in the Act or the Rules
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8Ul'REME OOURl' REPORTS
[1966) SUPP. s.c.R.
that ~or infrac~ion of the law committed by the purchasing dealer
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by rn1Sapphc~tmn of the ~oods aft~r he purchased them. or for any
fraudulent m1srepresentatmn by htm. penalty may be visited upon
the selling dealer.
Counsel for th.e appe.llant contended that the view expressed
by the Htgh Coort tn the Judgments under appeal was in any case
erroneous, because they held that a 'C' Form certificate produced
by the selling dealer is conclusive of the right to the concessional
rate of tax, and that no enquiry whatever may be made by the assessing authority. He invited our attention to the following passage
from the judgment which is under appeal in Civil Appeal No. 335
of 1965:
"We are of the opinion that whether or not the goods
were in fact used for the stated purposes or even usable for
such a purpose, so long as the purchasing dealer has furnished
the required declaration to the selling dealer, the selling dealer
becomes under law entitled to the benefit of section 8(1) of the
Act. It is no function of the selling dealer to enter into a judicial examination of whether the goods arc in fact used or
usable for the manufacture or processing of goods for sale by
the purchasing dealer. The purchasing dealer declares that
they are required for such a purpose and are further so specified in his form of registration granted by the sales tax authorities. It is not the function of the selling dealer to enquire
whether the requirement of the purchasing dealer L~ bona fide
or even is or is not within the certificate of registration of that
dealer."
It is implicit in the context in which these observations occur
that if the purchasing dealer holds a valid certificate specifying the
goods which arc to be purchased, and furnishes the required declaration to the selling dealer, the selling dealer becomes on production of the certificate entitled to the benefit of s. 8(1). It is of course
open to the sales tax authority to satisfy himself that the goods
which are purchased by the purchasing dealer under certificate in
Form 'C' arc specified in the purchasing dealer's certificate in Form
'B'. Observation of the High Court that the selling dealer may not
enquire whether the requirement is not within the certificate of registration of the purchasing dealer is not accurate. But whether the
goods specified in the registration certificate in Fom 'B' can be
used for the purpose is not for the selling dealer to determine. That
is a matter which has already been determined by the notified
authority issuing the certificate of registration.
Appeal No. 334 therefore fails and is dismissed with costs. In
Appeals Nos. 335 & 338 the respondent is the same asscssec, and
common questions for different periods are raised. These appeals
also fail and arc dismissed with costs. One hearing fee.
Appeals dismissed.
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