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TMI Blog1967 (5) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... r 1959-60 the Commercial Tax Officer assessed him on a taxable turnover of Rs. 17,40,960.52 P. under the Madras General Sales Tax Act, 1959 (hereinafter referred to as the "Act") at various rates. His turnover in respect of French coffee sales was Rs. 50,848.28 P. Out of this amount it was the case of the assessee that the local sales were Rs. 41,154.32 P. and outside sales were Rs. 9,693.93 P. The assessee further contended that the local sales of French coffee were made from his local purchases of coffee seeds amounting to Rs. 57,952.22 P. and that outside sales of French coffee seeds came out of his outside purchases of coffee seeds amounting to Rs. 26,581.22 P. The Commercial Tax Officer (Assessments), Madurai. assessed him on the turn- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd only at the point specified therein on the turnover in each year relating to such goods whatever be the quantum of turnover in that year." Items 31, 32 and 33 of the First Schedule state: "Item 31. Chicory At the point of first sale in the State. 5% Item 32. Coffee, that is to say, any one of the forms of coffee such as coffee beans, coffee seeds (raw or roasted), coffee powder, but not including coffee drink. ditto. 5% Item 33. French coffee (if the coffee portion of the French coffee has not already suffered tax in this State under item 32). ditto. 5% Section 10 provides: "The burden of proving that any dealer or any of his transactions is not liable to tax under this Act shall lie on such dealer." Section 40 reads as follo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l maintain stock accounts of goods dealt in by him." In S. Rathinaswamy Chettiar v. The State of Madras [1962] 13 S.T.C. 419., the assessee, a dealer in bullion and jewellery, sold bullion purchased both from dealers and persons other than dealers. The total sales turnover of bullion came to Rs. 5,63,000 out of which the assessee claimed that a turnover of Rs. 3,80,918 representing sales of bullion purchased from dealers, was exempt from tax as second sales inasmuch as a presumption should be raised in his favour that the entire quantity covered by second sales was included in the sales turnover of Rs. 5,63,000. The assessee did not maintain a separate account of the gold sold from out of the stocks obtain- ed from dealers or licensees. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any question of hardship. In our opinion, the argument on behalf of the appellant is well-founded and must be accepted as correct. The earlier decision of the Madras High Court in S. Rathinaswamy Chettiar v. The State of Madras [1962] 13 S.T.C. 419., requires to be reconsidered in view of the statutory provisions of the new Act, i.e., The Madras General Sales Tax Act, 1959 (Madras Act 1 of 1959). We consider therefore that the judgment of the Madras High Court should be set aside and the case should be remanded. But it is also necessary, in this case, to set aside the order of the Appellate Tribunal dated May 15, 1963, so far as it concerns the turnover of the assessee relating to French coffee. There is no clear finding by the Appellate Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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