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TMI Blog1963 (2) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... General Sales Tax Act or the Andhra Pradesh General Sales Tax Act by reason of the sales being of interState character and, therefore, no question of allowing a rebate arose, The assessee carried an appeal to the Deputy Commissioner of Commercial Taxes contending that the turnover in question comprehended all intra-State sales and not inter-State transactions and as such they should be subjected to tax so that he could claim a rebate. This contention of the assessee did not find favour with the appellate authority with the result that the appeal was dismissed. The assessee did not fare better in the further appeal he carried to the Sales Tax Appellate Trbunal. This authority also shared the view of the assessing authority and the Deputy Commissioner of Commercial Taxes on the question of the nature of the transactions. Aggrieved by this decision of the Sales Tax Appellate Tribunal, the assessee has filed this revision petition. In support of this petition, it is urged by Sri K. Venkataramaiah, learned counsel for the petitioner, that all the transactions partake of an intra-State character and have no elements of inter-State sales. According to him, the buyer as well as the seller ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e could be said to have been effected only after the documents of title were endorsed in favour of the buyer and handed over to him, cannot be disputed. There is authority for this proposition of the highest Court of the land. In Commissioner of Income-tax v. Bhopal Textiles Ltd[1961] 41 I.T.R. 72 (S.C.)., it was held that as the assessee had handed over the receipts to the bank and asked the bank not to deliver the railway receipts to the buyers unless payment was received, the document of title to the goods remained the property of the assessee until payment for it was received and it was handed over. Prior to the endorsement of the railway receipt against payment, it remained only in the stage of an agreement to sell and it was only after delivery of the railway receipt that the sale was effected. Indisputably, in this case, the transfer was effected during the movement of the goods. Therefore, it falls within the purview of section 3 of the Central Sales Tax Act, 1956, and the department was right in not taxing these transactions. However, we need not be detained any further on this topic, having regard to the fact that the department did not levy any tax on these transacti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1) shall be levied on the net turnover of a dealer. In determining the net turnover the amounts specified in clauses (a) to (m) shall, subject to the conditions specified therein, be deducted from the gross turnover of a dealer. * * * * (k) all amounts which a registered manufacturer of groundnut oil (other than refined groundnut oil) and cake may be entitled to deduct from his gross turnover under rule 18 subject to the conditions specified in that rule." A combined reading of these two rules leads to one conclusion, namely, that a dealer who complies with the conditions specified in both of them could ask for a rebate, only when the sale of oil extracted from the groundnuts purchased by him in respect of which he had already paid tax, is included in his turnover. The argument of Sri Venkataramaiah, learned counsel for the assessee in this behalf, is that since the assessee himself has shown this turnover in his returns, sub-rule (2) of rule 18 of the Madras General Sales Tax (Turnover and Assessment) Rules springs into operation and, consequently, he is entitled to a deduction. We do not think that we can give effect to this argument. The mere fact that the assessee has s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oint. All that was decided there was that if the assessee was to claim the benefit given to him under the Turnover and Assessment Rules, he should comply with the conditions and terms specified in the rules. That does not touch the question to be answered by us. Deputy Commissioner of Commercial Taxes v. Lakshmana Swamy[1956] 7 S.T.C. 560. belongs to the same category. However, there are observations in this decision which furnish an answer to the contention of the learned counsel for the assessee. Satyanarayana Raju, J., who spoke for the Court, observed at page 564 of the report as follows: "The general scheme of taxation adopted under the Act and the rules made thereunder is multipoint taxation. Tax is levied at specified rates on the total turnover of a dealer if it exceeds a specified limit. In respect of the same transaction of sale, the buyer or seller but not both, as determined by the rules, shall be taxed. Where a dealer has been taxed in respect of the purchase of any goods in accordance with the rules, he shall not be taxed again in respect of any sale of goods effected by him." Another passage which is pertinent in this context occurring in the same page is as follow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le of the oil would be liable to tax. If the assessees were exempted from paying tax on the sale turnover of the oil as the sale was outside the State, they cannot claim the benefit of the deduction under rule 18(2) of the Turnover and Assessment Rules." There is a decision of the Supreme Court which also helps us in the decision of this matter. A.V. Fernandez v. State of Kerala dealt with rule 20 of the Travancore-Cochin General Sales Tax Rules, 1950. Rule 20 of these rules is similar in terms to rule 18 of the Madras General Sales Tax (Turnover and Assessment, Rules and rule 25 of the Andhra Pradesh General Sales Tax Rules. The Supreme Court, while affirming the decision of the High Court of TravancoreCochin that as the amount for which the oil was sold could not be included in the taxable turnover, there was no occasion for deduction under rule 7(1)(k) of the value of coconut or groundnut purchased and converted by the assessee into oil and cake irrespective of the fact whether the same had been sold by him inside the State or outside the State, extracted with approval the following passage from the judgment of the High Court: "There can be no doubt that what has been inte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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