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TMI Blog1964 (4) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... and other materials required in their tannery. For the assessment year 1954-55, the Sales Tax Officer, Circle IV, Hyderabad, found that the total turnover of the respondents was Rs. 5,70,417-12-4 (O.S.) in respect of the hides, skins, wool and tanning bark. The respondents disputed their liability to pay tax on Rs. 61,431-14-9 (O.S.) included in the turn- over contending that this amount represented the price paid for buying tanning bark required in their tannery. They submitted that tanning bark was bought for consumption in the tannery and not for sale, and they were accordingly not dealers in tanning bark and therefore the price paid for buying tanning bark was not liable to duty under the Hyderabad General Sales Tax Act. The Sales Tax O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5(1) provides that save as provided in sub-rule (2) the turnover of a dealer for the purpose of the rules shall be the amounts for which goods are sold by the dealer. Rule 5(2) provides that in the case of certain commodities the turnover of a dealer for the purpose of the rules shall be the amount for which the goods are bought by the dealer. Those commodities are: (a) Groundnut (shelled or unshelled). (b) Bidi leaves. (c) Tarwar and other tanning barks. (d) Til, karad and castor seeds. (e) Cotton including kappas. (f) Linseed, turmeric, dhania and other agricultural produce including all kinds of dals and paddy (husked or unhusked) not otherwise exempted under the said Act, but excluding co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same commodity. Mere buying for personal consumption, i.e., without a profit-motive, will not make a person dealer within the meaning of the Act, but a person who consumes a commodity bought by him in the course of his trade, or use in manufacturing another commodity for sale, would be regarded as a dealer. The Legislature has not made sale of the very article bought by a person a condition for treating him as a dealer: the definition merely requires that the buying of the commodity mentioned in rule 5(2) must be in the course of business, i.e., must be for sale or use with a view to make profit out of the integrated activity of buying and disposal. The commodity may itself be converted into another salable commodity, or it may be used ..... X X X X Extracts X X X X X X X X Extracts X X X X
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