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TMI Blog1958 (9) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... dealers who, in their turn, sold the hides and skins to persons in Madras State, under rule 16(2)(ii) of the Rules. The imposition was contested on the ground that the tax could be collected only from persons who last purchased the hides and skins from the petitioners and exported them to Madras. This objection did not prevail with the Department and tax was levied on the petitioners. An appeal by them to the Sales Tax Appellate Tribunal was dismissed. In these revision cases brought by the aggrieved assessees, the same questions are raised. The point presented is that since rule 16(2)(ii) contemplates not only licensed dealers but also unlicensed dealers, the Department should look to the persons who last sold the hides and skins to someon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : "(1) Rules 6 to 13 shall not apply to licensed tanners and other licensed dealers in hides or skins in respect of their dealings in hides or skins; but the provisions of this and the following rule shall apply to them in respect of such dealings." The other material rule is rule 16. Rule 16(2) reads thus: "No tax shall be levied on the sale of untanned hides or skins by a licensed dealer in hides or skins except at the stage at which such hides or skins are sold to a tanner in the State or are sold for export outside the State." This sub-rule contemplates the levy of taxes on licensed dealers in hides or skins on either of the two occasions; namely, either at the stage of sale to a tanner in the State, or when the sale is effected for e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subject to the provisions of section 3, be liable to taxation on each occasion of sale." The scheme of all the rules read with section 5(vi) of the Madras General Sales Tax Act, 1939, is to confer a benefit on licensed dealers. What section 5, clause (vi), says is this: "Subject to such restrictions and conditions as may be prescribed, including conditions as to licences and licence feesthe sale of hides and skins, whether tanned or untanned shall be liable to tax under section 3, sub-section (1), only at such single point in the series of sales bv successive dealers as may be prescribed." It cannot be contended that the same advantage was sought to be conferred even on unlicensed dealers. That being the position, we think that under rule 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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