JUDGMENT
1. The Additional Revising Authority, Sales Tax, Allahabad, has referred the following question of law for the opinion of this court:
Whether, on the facts and in the circumstances of this case, the assessee was entitled to the benefit of the lower rate of tax under Section 8 of the Central Sales Tax Act on the inter-State sale, under the bill of 28th June, 1965, of Rs. 1,002.24 relating to the tins to Dwarka Prasad Shanker Lal of Bihar registered under the Central Sales Tax Act with effect from 8th July, 1965.
2. The findings of fact are that the assessee sold mustard oil in tins to Dwarka Prasad Shanker Lal of Bihar on 28th June, 1965. The firm M/s Dwarka Prasad Shanker Lal furnished form C with regard to this transaction. The form showed that the firm bas been registered on 8th July, 1965 There was no material on record to show as to what was the date on which the firm Dwarka Prasad Shanker Lal had applied for registration. Consequently, the contention of the learned counsel for the assessee that the fact that the transaction was prior to the date of registration will not prevent the assessee from using C form from an earlier date than 8th July, 1965, cannot be sustained. The learned counsel also suggested that 28th June, 1965, was the date of despatch of the goods and that the delivery was taken by the purchaser on or about 8th July 1965. Again there is no material on record to establish this fact. The position therefore is that the transaction of sale took place on 28th June, 1965, while the purchaser was registered on 8th July, 1965. Under Section 8(1) of the Central Sales Tax Act a dealer is liable to pay sales tax at the lower rate mentioned in it provided he sells to a registered dealer. Evidently the purchaser must be a registered dealer on the date of the sale otherwise the sale cannot be termed to be a sale to a registered dealer. Rule 8 of the Central (U. P.) Rules provides for the authority from which declaration forms may be obtained, use, custody and maintenance of such forms and matters incidental thereto. Under this rule declaration form C is to be given to a dealer only after his registration and after the Sales Tax Officer is satisfied with the conditions mentioned in the rule. Under Rule 8(1-C) the purchasing dealer has to furnish declaration to the selling dealer after filling all the required particulars and after signing it.
3. With reference to these provisions the Judge (Revisions) observed that the law requires that the dealer should not get C form before he is registered and, consequently, should not use such a form before such registration. But there is nothing in the law to prevent a dealer from obtaining C form in connection with a transaction prior to the date of transaction (sic). In our opinion, the revising authority was in error in taking this view. When Section 8 permits the levy of the lower rate of sales tax only if the sale is to a registered dealer, the dealer can get the benefit of this provision only if he proves that he sold to the person who was on the date of sale a registered dealer. The mere fact that after registration the purchasing dealer furnishes form C obtained by him in respect of a transaction of purchase made by him prior to his registration will not in law make the transaction one of sale to a registered dealer. The question whether the purchasing dealer was a registered, dealer on the date of the sale cannot be established by merely furnishing the declaration form C. In view of the statutory provisions of Section 8(1) a purchasing dealer who furnishes declaration form C In respect of a transaction of sale entered into prior to the date of his registration does so illegally. In any event the mere furnishing of declaration form C will not convert the sale to an unregistered dealer into a sale to a registered dealer. A dealer becomes a registered dealer on his being registered under the Act.
4. In this view the assessee was not entitled to the benefit of the lower rate of tax under Section 8(1) of the Central Sales Tax Act. Our answer to the question referred to us is in the negative in favour of the department and against the assessee. The department will get costs from the assessee which we assess at Rs. 100.