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TMI Blog1961 (9) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... to the Appellate Tribunal. The contention raised was that the deductions allowed by the Deputy Commercial Tax Officer were made on the basis of the particulars contained in the Form A-9 applications and that it was not competent to the Commercial Tax Officer to vary the quantum of the deduction relying upon the third proviso to rule 18(2). This proviso reads: "Provided further that the amount of the turnover in respect of which deduction is allowed shall not exceed the amount of the turnover attributable to the groundnut and/or kernel used in the manufacture of oil and included in the net turnover." The Appellate Tribunal held that the object of the provision was only to afford relief against what may be regarded as double taxation, that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l. What the proviso upon which the Commercial Tax Officer and the Appellate Tribunal relied does is only to set an upper limit to the quantum of deduction, that is to say, that upper limit is fixed as the value of the groundnut or kernel which the assessee purchased and used in the manufacture of the oil. The content of rule 18 may be broadly set out thus: A dealer manufacturing groundnut oil has to get himself registered. If he fails to register himself, he is not eligible to the deduction contemplated under rule 5(1)(k). Rule 18(2) fixes the quantum of such deductions as "equal to the value of the groundnut or kernel purchased by him and converted into oil and cake, if he has paid the tax to the State on such purchases". For calculating ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duction should be allowed. It is notional in a double sense, namely, the statutory percentage of conversion of oil to groundnut as set out in the explanation is valued, that is to say, though a known quantity of groundnut might have been used in the production of a certain quantity of oil, the notional quantity of groundnut is assumed to have been used. The next stage is its valuation, again notionally, under rule 18(4). If the manufacturer is entitled to the deduction of this notional value, the second proviso which we have extracted above loses all meaning. This notional value is undoubtedly the amount of turnover in respect of which deduction is allowed within the meaning of sub-rule (2) of rule 18. But the proviso to this rule sets an u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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