LexKARAM CHAND THAPAR & BROS. (COAL SALES) LIMITED versus STATE OF UTTAR PRADESH AND ANOTHER
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KARAM CHAND THAPAR & BROS. (COAL SALES) LIMITED v. STATE OF UTTAR PRADESH AND ANOTHER July 21, 1976 [A. C. GUPTA AND JASWANT SINGH, JJ.] Central Sales Tax Act (74. of 1956), s. 9(1), proviso-Scope of. 25 U.P. Sales Tax Act .• 1948, S. 22-0rder of rectification passed within 3 years tJf original order, but served beyond 3 years-If barred by limitation. ' Under s. 3 (b), Central Sales Tax Act, 19 56, a sale or purchase of goods A B is deemed to take place in the course of inter-State trade or commer~e if the sale or purchase is effected by a transfer of documents of title to the goods C -during their movement from one State to another. Section 7(3) provides that on the application of the dealer the prescribed authority shall register the applicant and grant him a registration certificate which shall specify the -class or classes of goods for the purpose of s. 8 ( 1); and the Form prescribed by r. 3, Central Sales Tax (Registration and Turnover) Rules, 1957, for applica- tion for registration, requires the purposes for which the goods were purchased .by the dealer to be specified, re-sale beiug one· such purpose. Section 8 ( 1) (b) provides that every dealer who, in the course of inter-State trade or commerce D selJs, to a registered dealer other than the Government; goods of the description referred to in sub-s. (3) shall be liable to pay 3% of his turnover ~s tax under the Act; whereas, under s. 8(2), the tax payable with respect to goods which do not fall within sub-s. (I) shall be, in t:lm case of declared goods, at the rate applicable to the sale or purchase of such goods inside the appropriate State and in the case of other goods 10%, or the rate applicable in the State, whichever is higher. Prior to April 1, 1963, s. 8 (3) stated, that the goods referred to in s. 8 (1 )(b), " (a) in the case of declared goods, are goods of the class or classes specified in the certificate of the registered dealer purchasing E the goods as being intended for re-sale by him; and (b) in the case of goods other than declared goods are goods of the class or classes specified in the certificate of registration of the registered dealer purchasing the goods as being intended for re-sale by him." By the Amendment Act (8 of 1963), cl. (a) was omitted and the opening words in cl. (b), "in the case of goods other than declared goods" were also omitted; so that, after April 1, 1963, the goods referred to in s. 8(1)(b) are specified in sub-s. (3) as goods of the class or classes specified in the certificate of registration of the registered dealer purchasiug F the goods as being intended for re-sale by him. Section 8(4)(a) says that the provisions of s. 8 ( 1) shall not apply to any sale in the course of inter-State trade or commerce unless the dealer selling the goods furnishes to the prescribed authority in the prescribed manner, a declaration in the prescribed. Form, duly filled and signed by the registered dealer to whom the goods are sold containing the prescribed ·particulars. Section 9(1) contains a general rule that the tax payable by any dealer on sales effected in the course of inter-State trade or commerce would be levied by the Government of Ind_ili and collected in the State from which the movement of the goods commenced. The proviso to the G sub-section qualifies this rule in the case of a subsequent sale which is not exempted from tax under s. 6(2), and states, that the tax on such subsequent sale would be levied and collected in the State from which the registered dealer effecting thel subsequent siale obtained, or could have obtained, the Form prescribed for the purpose of s. 8(4)(a). Coal is one of the declared goods having been declared under s. 14 to be of special importance in inter-State trade or commerce. The appellant was a Company carrying on business as coal agents and was H Tegistered in U.P. under the U.P. Sales Tax Act, 1948, and the Central Sales Tax Act. The appellant arranged for the supply of. coal from collieries in W. Bengal and Bihar to consumers in U.P. The collieries sent the coal by 4-1003 SCT/76 A B c D E F G H 26 SUPREME COURT REPORTS [1977] 1 S.C.R. rail, the railway receipts either in the name of the appellant or in the name of the consumer in U .P., and sent the bills and invoices to the appellant's head office in Calcutta. The appellant forwarded the railway receipts 1:0 the consu- mers in cases where the receipts
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