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TMI Blog1962 (3) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... -74 nP. and the said order having been confirmed by the Deputy Commissioner, Anantapur, the matter was carried in appeal to the Sales Tax Appellate Tribunal, Hyderabad, which confirmed the orders of the departmental authorities. Against that decision the above revision was preferred. A number of contentions appear to have been raised before the Tribunal. But the learned counsel for the petitioner, Sri C. Kondaiah, made only two submissions, viz., (1) that the Tribunal ought to have allowed by way of deduction Rs. 1,10,443-57 nP. from the taxable turnover in respect of the sales of cotton seeds made by the assessee locally, and (2) that the Tribunal erred in treating Rs. 2,06,397-31 nP., as re-sales and not granting the exemption thereon. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay be prescribed. (5) The taxes under this section shall be assessed, levied and collected in such manner, as may be prescribed: Provided that- (i) in respect of the same transaction, the buyer or the seller, but not both, as determined by such rules as may be prescribed, shall be taxed; (ii) where a dealer has been taxed in respect of the purchase of any goods, in accordance with the rules referred to in clause (i) of this proviso, he shall not be taxed again in respect of any sale of such goods effected by him." Schedule II to the Act enumerates the goods in respect of which a single point sales tax only is leviable under section 5(3)(a), and item 23 therein is to the effect that cotton seeds are liable to levy at the point of fir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of levy when purchased by a spinning mill in the State is at the point of purchase by the spinning mill and in all other cases at the point of purchase by the last dealer who buys it in the State, and that the rate of tax is 2 naye Paise in the rupee. In the instant case, the assessee contends that as the purchaser of cotton, the tax was already levied on him under item 5 of Schedule IV to the Act, and that as seller of cotton seeds, tax was again levied on him on their sale, that cotton seeds form part of cotton (called kapas), and that it is a case of double taxation, which ought not to be allowed. He, therefore, contends that a deduction ought to have been allowed in respect of the turnover relating to the sale of cotton seeds. In oth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ountry tobacco, viz., the leaf, did not remain in the same form, but it changed its character as raw leaf to that of a finished consumable article like the cigars, or cheroots, and that it is not the leaf that is consumed as cigar or cheroot, and that some manufacturing process was involved in the production of those articles, and that the contention of double taxation had no foundation. Applying the principle laid down therein, what do we find in the instant case? Kapas or cotton in its unmanufactured state, no doubt, contains the cotton seed. But it is only by a manufacturing process that the cotton and the seed are separated, and it is not correct to say that the seed so separated is cotton itself, or part of the cotton. They are two dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anvass the reasonableness or the justification of such a classification, relying upon the hardship that would result therefrom. We have stated above our reasons for holding that cotton seeds cannot be said to be the same goods as cotton. In that view, we are of the opinion that there is no force in this contention that there was double taxation. The deduction claimed under this head, therefore, fails. Amplifying the second contention of the petitioner it is said that they sold the cotton of the value of Rs. 2,06,397-31 nP. to Messrs Bharat Vijay Mills, Adoni, who were registered dealers under the Act and who exported the same goods figuring as consignor and consignee, and that they are sales within the State and not governed by the Centra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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