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TMI Blog1971 (11) TMI 156X X X X Extracts X X X X X X X X Extracts X X X X ..... overs of Rs. 2,99,152.93 for the year 1964-65, Rs. 3,36,029.00 for the year 1965-66 and Rs. 7,45,313.12 for the year 1966-67, exemption was claimed on the ground that they are not the last dealers in the State. Under entry 9 to Schedule 3 of the Andhra Pradesh Sales Tax Act (hereinafter referred to as the Act), hides and skins are taxable at the purchase point by the tanner and in all other cases at the point of purchase by the last dealer who buys them in the State. The Commercial Tax Officer, Srikakulam, who is the assessing officer held that the assessee-firm purchased the raw hides and skins for resale and had not used them for tanning and they were not liable to be taxed as the firm was not the last dealer. The Deputy Commissioner, Vis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e has been affirmed by the Supreme Court in Sri Venkateswara Rice, Ginning and Groundnut Oil Mill Contractors Company and Others v. The State of Andhra Pradesh and Others (Civil Appeals Nos. 1809 to 1812 of 1968)(3), though the decision related to a turnover of groundnuts with regard to which there is a similar provision in the Act when purchased by a miller. The contention of the assessee, however, is that he was not carrying on business solely in the purchase of hides and skins for tanning, that he was also doing large-scale business in purchase and sale of raw hides and skins at a different place, i.e., at Srikakulam and not at Vizianagaram, where the tannery was situated, and as the two businesses were separately registered and he has a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o other illegality attached to having independent dealings in purchase and sale of raw hides and skins. A firm can make purchases of raw hides and skins for the purpose of resale in several centres and have a tannery at another centre, where small quantities of the purchases are tanned for purpose of export. Therefore, it cannot be said that all the purchases of raw hides and skins by the firm were for tanning, however disproportionate the purchases may be in relation to the needs of the tannery. Therefore, it will not be correct to say that once a firm has a tannery, all the purchases made by it wherever they may be in the State, are deemed to have been made for the tannery and as such exigible to tax at the hands of the firm as a tanner. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the years 1965-66 and 1966-67 were not done by him as a tanner, but as a dealer and they were not exigible to tax. In support of this contention, he relied on his books of account showing that the tanning operations had ceased after 2nd May, 1965, and a certificate issued by the Regional Inspector of Factories showing that they had been intimated about the stoppage of the working of the factory. But from the fact that there were sales of hides and skins without opening stock in, the years 1965-66 and 1966-67, the Tribunal held that unless there have been purchases and tanning during this period there could not have been sales of the tanned hides and skins and rejected the plea of the assessee. It is now contended that books have not be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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