Law: Sales Tax Act, (III of 1951)

Section: 44,8,16

Sales Tax Act (III of 1951)--S. 4 Sales Tax Rules, 1951, rr. 4, 8 & 16 Exemption of licensed manufacturer Burden of proof Licence under rr. 4 & 8, Sales Tax Rules, 1950, issued to manufacturer on satisfaction of Sales Tax Officer Unless established otherwise presumption that licences were in existence Department on subsequent enquiries finding party to be bogus and non existent Held, duty to issue licence being on department, if department did not take care to issue licence after proper verification and satisfaction and have gone on issuing licence to bogus and non existent parties, responsibility entirely laid upon Department, as a licensed manufacturer would only see copy of licence and will not make any enquiry to establish genuineness of any such licence No evidence available to establish that licence of purchaser was cancelled before sale or assessee had knowledge of cancellation of licence at time of sale or about non existence of licensee Assessee entitled to exemption under S. 4 in circumstances. JUDGMENT SALEEM AKHTAR, J. By this application under section 17(1) of the Sales Tax Act, the assessee has referred the following questions: (1) Whether in the facts and circumstances of the case the Tribunal was justified in holding that the sales made to the following parties i.e. (1) Messes Crescent Industries. (2) Messrs Zakaria Textile Mills. (3) Messrs Gohar Textile Mills. (4) Messrs Iqbal Textile Mills. (5) Messrs Imperial Textile Mills. (6) Messrs Globe Textile Mills. (7) Messrs Haji Abdul Latif & Co. (8) Messrs Shahabi Textile Mills were not entitled to exemption under section 4 of the Sales Tax Act even though Manufacturers Licences had been issued to these parties by the Sales ax Officers. 2. Whether on the facts and circumstances of the case the Tribunal was right in holding that the applicant did not discharge the burden of proving that it made sales to the licenced manufacturers when photostat copies of the Manufacturer's Licences and the Certificates under rule 16 of the Sales Tax Rules were duly produced and none of which have been doubted the Tribunal? 3. Whether the Tribunal's order has been passed in complete disregard of the…

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