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TMI Blog1965 (6) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... rcise jurisdiction under section 34 of the Madras General Sales Tax Act, to show cause why the turnover relating to sales exigible to tax should not be refixed at Rs. 1,79,78,330.19 P. Eventually, after considering the objections of the dealer, the Board finally refixed the turnover liable to tax at Rs. 1,53,07,997.75 P. inclusive of the turnover which had been originally brought to tax. The Board has levied the tax on this turnover under section 5-A(3) of the Madras General Sales Tax Act, 1939, read with rule 4-A(iv) of the Madras General Sales Tax Rules and sections 6 and 9 of the Central Sales Tax Act. The appellant contends that cotton in the Madras State is liable to sales tax at the last purchase in the State and that the sales which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Sales Tax Act. The Board repelled the contention of the appellant that there was no transfer of the railway receipts or bills of lading as there was no endorsement thereon made by the appellant in favour of the local ultimate purchasers. On a contention similar to that raised by the appellant as to the scope of sections 8(2) and 9(1) of the Central Sales Tax Act in their interaction with the provisions of the Madras General Sales Tax Act, this Court held in Mariappa Nadar v. State of Madras[1962] 13 S.T.C. 371. that the phrase "in the same manner" in section 9(3) of the Central Act did not make applicable all the incidents of the local sales tax law to the assessment under the Central Sales Tax Act and that what was contemplated by that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he expression 'in the manner' may give rise to two conflicting views, namely, (i) it is concerned only with the calculation of the tax, and (ii) it deals not only with the calculation of the rates but also the manner of levy of the tax. But section 9(1) dispels the ambiguity for it says that the tax payable by any dealer under the Central Act shall be levied and collected in the appropriate State by the Government of India in the manner provided in sub-section (2); and sub-section (2) of section 9 empowers the appropriate State authorities to assess, collect and enforce payment of any tax payable by any dealer under the Central Act in the same manner as the tax on the sale or purchase of goods under the general sales tax law of the State is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g that tax should be levied at the first sale in the State of powerloom textiles. But, we are unable to appreciate the distinction. The sales in question, assuming them to be of the type under section 3(b) of the Central Act, are not the last sales in the State in which the last buyer can be brought to tax. As a matter of fact, as we find from the facts of the present case, there have been subsequent sales by the appellant himself of the very goods to the ultimate buyers, namely, the consuming mills in the State. The crux is that what is taxable in the State is the last purchase of cotton. The sales in question do not certainly answer that description. On the interpretation placed by the Supreme Court on sections 8(2) and 9(1) and (3), and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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