9911796707
TMI Blog1965 (10) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... i Iyer, hereinafter referred to as the assessee, is a dealer in tobacco. He objected to the assessment of the turnover of Rs. 7,757.54 for the assessment year 1957-58, inter alia, on the ground that the goods were the subject-matter of purchases which had already been assessed at the point of purchase in the hands of the assessee. He failed before the Sales Tax Authorities, but in a revision the High Court accepted his contention and held that this turnover was not liable to tax. In order to appreciate the contention of the appellant it is necessary to mention a few facts. During the period April 1, 1957, to September 30, 1957, the assessee was residing in Malabar and in this area the Madras General Sales Tax Act (9 of 1939) applied. Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contained in Schedule II. (2) The Government may from time to time by notification in the Gazette add to, alter or cancel Schedule II." Schedule II is in the following terms: " 1. Every registration effected and every licence issued under the Madras General Sales Tax Act, 1939, or the Rules made thereunder in their application to the Malabar District referred to in sub-section (2) of section 5 of the States Reorganisation Act, 1956 (hereinafter referred to as the Malabar area), and in force at the commencement of the Travancore-Cochin General Sales Tax (Amendment) Act, 1957, shall be deemed to have been effected or issued under this Act or the Rules made thereunder. 2.. In calculating the total turnover for the financial year ending wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s are sold by him at such point, and where the taxable point so specified is a point of purchase, the buyer shall be liable for the tax on the turnover for which the goods are bought by him at such point." The description of item 2 in column (2) of Schedule I at the relevant time was "Tobacco other than beedi tobacco (Suka)." In exercise of the powers conferred by section 5(vii) the Government issued a notification No. HI-10674/57/RD-2 dated September 28, 1957. The relevant portion of the notification reads as follows: "In exercise of the powers conferred by clause (vii) of section 5 of the General Sales Tax Act (Act 11 of 1125) the Government of Kerala hereby specify the point mentioned in column (3) of the Schedule, hereto appended as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een assessed before Act 12 of 1957 came into force, he would have been assessed under the Madras Act at the purchase point because a liability within the meaning of section 4(c) would have been incurred by him. To this liability would be attached a right; the right being that he would not be liable to be taxed in respect of any sale of goods which had been the subject-matter of a purchase and taxation under the Madras Act. In other words, he was liable to be assessed under the Madras Act in respect of the purchase of goods but he had also a right not to be taxed again in respect of any sale of the same goods effected by him. Therefore, we repel the first argument of the learned Advocate-General. The next question that arises is whether Act ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
