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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 ..... RAMASWAMI, J.- The respondent (hereinafter referred to as the "assessee") is a dealer in various commodities including coffee powder at Theni, Madurai District. For the assessment year 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 out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ates as follows: "Notwithstanding anything contained in sub-section (1) in the case of goods mentioned in the First Schedule, the tax under this Act shall be payable by a dealer, at the rate and 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 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liable to tax at different rates and stages. .............................................................................................. (9) Every wholesale dealer, importer and manufacturer shall 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 c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the decision of the Madras High Court which was given under the Madras General Sales Tax Act, 1939 (Madras Act 9 of 1939) requires to be reconsidered, and there was no scope for taking into account 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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