ASSESSING AUTHORITY, PATIALA DISTRICT PATIALA ANDORS. vs M/S. PATIALA BISCUITS MFG. CO. NOW AS DALMIABISCUIT PVT. LT

The Supreme Court held that under Section 5(2)(a)(ii) of the Punjab General Sales Tax Act, 1948, the assessee is entitled to deductions for sales made to a purchasing dealer, even if the purchasing dealer was not in physical possession of the registration certificate at the time of sale, provided the certificate was issued with retrospective effect. The Court clarified that the registering authority had the competence to issue registration certificates retroactively, and the amendment to Rule 5 was merely clarificatory. The High Court's decision was upheld, affirming the entitlement to deductions for the relevant sales period.