9911796707
TMI Blog1961 (9) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 3(2) of the Madras General Sales Tax Act. This objection the part of the dealer was overruled by the assessing authority. The petitioner preferred an appeal to the Commercial Tax Officer and reiterated the contention that the sale of goods purchased from non-resident dealers should not be dealt with as the first sale under the proviso to section 3(2) of the Act. The appellate authority confirmed the decision of the first assessing authority. The petitioner thereupon preferred a further appeal before the Sales Tax Appellate Tribunal, Madras, and confined their claim for relief against the enhanced levy under the proviso to section 3(2) of the Act only to the extent of the value of sales turnover of Rs. 7,88,352-0-9. The Tribunal overrule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r sale to the petitioner and fix the price. Thereafter the agent of the seller would communicate to the principal at Bombay who would send the goods through the railway taking out the railway receipts in his own name, as consignor and consignee. The railway receipts would be handed over to the petitioner by the agent or would be cleared by the petitioner from the seller's bank at Madras. On these averments the contention of the petitioner is that the first sale was in their favour by the non-resident seller. Section 3(2) of the Act, as amended by Madras Act XXIII of 1957 dated 18th December, 1957, giving retrospective effect from 23rd August, 1954, is in these terms: "On the first sale of any of the goods mentioned below by a dealer who ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs cannot be aptly described as the first sale by a dealer residing in the State of Madras. In the absence of proof of any business activity on the part of nonresident in the State, section 14-A cannot have any application to a particular transaction. Though for the purpose of chargeability and the collection of the tax a resident agent in the State is deemed to be the dealer, it is only a statutory fiction which cannot be extended to mask the real nature of the business activity which is essentially one between a non-resident and a resident. We are of opinion that the representative character of the resident agent with which he is clothed under section 14-A of the Act cannot be read into the first proviso of section 3(2) of the Act to en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. "Application of these principles has meant that the Court is even less likely to challenge legislative classifications under the taxing power than under the police power; inheritance tax laws typically involve numerous discriminatory features-exemption of small estates, graduated tax rates, variation of tax rates according to whether the estate goes to lineal descendants, collateral heirs, or persons unrelated by bloodbut they have uniformly been upheld against claims of denial of equal protection. The same is true of the exemption and progressive rate features of income-taxes." (See Pritchett on the American Constitution, page 666). Rottschaeffer on Constitutional Law, page 667, states thus: "It is generally held that an issue under t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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