9911796707
TMI Blog1956 (4) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... Deputy Commissioner (Appellate) on the following grounds, namely that: (1) the Sales Tax Officer and the Deputy Commissioner, Appel- late, erred in asking the appellant to remit under section 11(2) of the Hyderabad General Sales Tax Act the sum of Rs. 1,773-1-3 which he withheld out of the moneys payable to his non-resident principals under doubtful liability of the turnover to sales tax as a protective measure and entered in the suspense account. It is payable to the principals. (2) the Sales Tax Officer and the Appellate Deputy Commissioner erred in holding the turnover of Rs. 58,273-2-6 relating to the goods ex- ported outside the State, liable to be taxed. As regards item (1) above, it is an admitted fact that wheat, jawar, and pulses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able and collected in excess by the dealer as such only is payable to the Government, but not the entire sum even that which is not lawfully leviable under the Act. We are supported in our view by the judgments of their Lordships of the Madras High Court in Tata Iron Steel Co. v. State of Madras(2), of the Mysore High Court in Minerva Mills and Another v. State of Mysore(3) and of the Hyderabad High Court in Cement Marketing Co. of India Ltd. v. Sales Tax Officer, VIIIth Circle, Secunderabad(4). The learned State Representative stressed much on the following words of section 11(2) "any amount by way of tax under this Act". The real meaning of these words can be well understood if they are read with sections 4 and 10 of the Act. Under sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... outside dealers. According to Dalton "a tax on sales or on turnover is only a tax on the commodities sold or turned over-it makes no essential differ- ence whether the tax is legally imposed on the buyer or seller." In Sri Radhakrishna Groundnut Oil Mills v. State of Madras(1) their Lord- ships of the Madras High Court have held that under rule 4(2) of the Madras General Sales Tax (Turnover and Assessment) Rules, the levy of tax at purchase point on dealings in groundnuts is lawful. It matters little whether an assessee sold the groundnuts he had purchased or converted that groundnut into oil, so long as the condition required by that rule was satisfied namely that the groundnut was purchased by the assessee in the course of his business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he intention already declared in sections 3(1) and 4(1). The real charging section of the Act is section 4, according to which "every dealer whose turnover is not less than Rs. 7,500......shall, save as otherwise provided in this Act, pay a tax......on so much of the turnover for the year as is attributable to the transaction in goods other than exempted goods". That is to say, the tax is leviable on every dealer or at every point of sale (or purchase) other than the cases falling under section 6 which have been specifically excepted. Therefore even if sec- tion 5(1) is deleted and the two provisos thereof are read with section 4 the position would remain the same and it would still mean that tax is leviable "at every point in a series of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 5(1) of the Act, namely, that only one of them, either the buyer or the seller, can be taxed on the same transaction and who, is a mat- ter left to be determined by the State, as stated above. In the case under consideration tax has been preferred to be levied on the pur- chase turnover of a dealer as provided in sub-rule (2) of rule 5 of the Hyderabad General Sales Tax Rules, 1950. Therefore the contention of the learned authorised representative of the appellant that section 5 (1) of the Act does not authorise such imposition of tax on purchase turnover of groundnut until the same commodity bought by the dealer is subsequently sold is, therefore, not valid, nor is it essential that there should be a series of sales to attract liabili ..... X X X X Extracts X X X X X X X X Extracts X X X X
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