9911796707
TMI Blog1973 (7) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... tax under section 5(4) read with Schedule IV of the Act. Prior to 1st April, 1970, the point of levy was purchase by the last dealer in the State liable to tax under the Act. By Mysore Act 9 of 1970, the point of levy was changed and it was made "purchase by the first or earliest of the successive dealers in the State" liable to tax under the Act. It is common ground that the amendment changing the point of levy has no retrospective or retroactive operation and is operative only with effect from 1st April, 1970. The question before the Sales Tax Appellate Tribunal in all the cases relating to the respondents was whether their respective turnovers relating to groundnut and/or cotton held in stock as on 31st March, 1970, were liable to tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , then what happens in subsequent years cannot be taken into consideration in determining the taxability of any purchases inside the State of declared goods and, further, that the taxable event is the last purchase in the State during the assessment year and if stocks are held at the end of the assessment year, it follows that an assessee holding stocks is the last purchaser in the State. That argument was repelled by the Supreme Court and it was held that a dealer is not liable to pay tax on the purchases until the purchases acquired the quality of being the last purchases inside the State. This is what the Supreme Court stated: "......It is true that sections 3 and 4 speak of 'a year', i.e., the financial year, and it is only the turnov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eration which prompted the Supreme Court to hold that the character of the stock in hand on the last day of the year of assessment was undetermined. He submitted that in view of the amendment effected by Act 9 of 1970, there was no possibility of the stocks held by the dealer being made liable to purchase tax in the State and, therefore, the respondents are the last dealers in the State liable to tax under the Act. In our opinion, the contention of the learned Government Advocate cannot be accepted. The question of liability to tax under the Act has to be determined with reference to the state of law as it existed during the relevant assessment year and not with reference to the law in force during a subsequent period. If the law in force ..... X X X X Extracts X X X X X X X X Extracts X X X X
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