1954 (4) TMI 38

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... doubt defined by Section 2 of the Act as "any person who carries on the business of buying or selling goods." We are unable to accept the interpretation placed upon that section by the learned counsel for the petitioner, which would really convert the definition into something like this: "Dealer means a person who carries on the business of buying and selling the very goods he bought". We see no basis in the scheme of the Act or in the wording of the section for such an interpretation. Under rule 4(2) of the Madras General Sales Tax Turnover and Assessment Rules, dealings in groundnut are taxable at the purchase point. It was on the purchase point that the assessee was taxed. When exactly he sold the groundnut, he had pur- chased or when ex .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ndnut kernel is certainly part of groundnut, and whether the groundnut bought by the dealer was sold as groundnut or was sold as groundnut kernel or was subsequently converted into oil and sold as oil, what was taxable was the purchase. We agree with the Tribunal in holding that the expression groundnut, even as the expression in clause 2(b) "cashew" included the kernel in this case, the groundnut kernel. The third point urged by the assessee was that in allowing the de- duction under rule 18 of the Madras General Sales Tax Turnover and Assessment Rules read with rule 5(1)(k), the assessee was entitled also Since reported as State of Madras v. Eastern Supplies Ltd. [1954] (5 S.T.C. 344). to deduct the purchase price of groundnut or groundnu .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... il so extracted from groundnut on the purchase of which no tax was paid. The last point urged was based upon Article 286(3) of the Consti- tution which runs thus: "No law made by the Legislature of a State imposing, or authorising the imposition of, a tax on the sale or purchase of any such goods as have been declared by Parliament by law to be essential for the life of the community shall have effect unless it has been reserved for the con- sideration of the President and has received his assent." The learned counsel for the petitioner contended that groundnut was declared by Parliament in 1952 to be essential commodity, and that therefore, the levy of any tax even on the purchase of groundnut was opposed to Article 286(3). Article 286 .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X