ORDER

In CA No. 1506 of 1982

1. Mr. V. B. Joshi states that he has filed his appearance for the respondents. It shall be taken on record.

2. The respondents were registered dealers under the Bombay Sales Tax Act, 1959. During the period 1-1-1967 to 31-12-1967 they purchased goods from M/s Sulekha Enterprises Corporation (hereinafter referred to as "Sulekha Enterprises"). Sulekha Enterprises were also registered dealers under the said Act and the bills given to the respondents contained a certificate to the effect that the registration of Sulekha Enterprises was in force on the date of the sales. The respondents thereaffer resold within the State of Maharashtra the goods purchased by them from Sulekha Enterprises. They claimed to deduct from their turnover of sales for the relevant accounting year the resales of the goods purchased from Sulekha Enterprises.

3. The Sales Tax Officer disallowed the respondents said claim for deduction upon the ground that the registration of Sulekha Enterprises had been cancelled on 20-8-1967, with effect from 1 - - 1967, and that, therefore, on the dates on which the respondents had purchased the goods from a Sulekha Enterprises, Sulekha Enterprises