9911796707
TMI Blog1972 (12) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... e Central sales tax on the inter-State sales can never be a consideration for refund of tax paid under the State Act, which the assessee is statutorily entitled to under section 15(b) of the Central Sales Tax Act, 1956 (hereinafter called the Central Act). These contentions of the assessee had been rejected by the assessing authority. Against the order of assessment so far as it relates to the turnover on last purchase of cotton, an appeal was filed before, the Appellate Assistant Commissioner. That appeal, however, failed. The assessee took the matter on appeal to the Sales Tax Appellate Tribunal. The Tribunal held that the assessment so far as it relates to the turnover on last purchase of cotton within the State under section 4 cannot be challenged and that the claim for refund of the tax paid on that turnover is not sustainable as It has not fulfilled the conditions imposed by the provisions of rule 23(1) of the Madras General Sales Tax Rules, 1959. Against the order of the Tribunal the assessee has filed T.C. No. 11 of 1971 under section 38 of the State Act. The assessee has also filed the above writ petition seeking a writ of mandamus to the respondent to refund the sum o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee will not be the last buyer in the State but the out-of-State purchaser from the assessee will be the last buyer. The learned counsel seeks support for his submissions mainly from the decisions of this court in Madura South India Corporation (P.) Ltd. v. Joint Commercial Tax Officer[1968] 21 S.T.C. 163. and that of the Supreme Court on appeal in State of Tamil Nadu v. Madura South India Corporation (P.) Ltd.[1972] 30 S.T.C. 401 (S.C.). This court in Madura South India Corporation Private Ltd. v. Joint Commercial Tax Officer[1968] 21 S.T.C. 163. dealt with a case of an assessee having a head office at Madras, who purchased yarn from Madura Mills for delivery to its branches outside the State and thereafter brought the same to Madras and sold them inside the State. The question arose as to whether the sales made locally of yarn transferred to the Madras State from the stocks of yarn In the States of Andhra Pradesh and Kerala referable to inter-State sales already charged to tax are again liable to tax as first sales In the State of Madras. Considering that question this court expressed the view thus: "In our opinion, where the terms of a first sale are such that it may well be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erms of the first sale by the Madura Mills to the assessee were such that it was only an inside sale. But it took the characteristics of an inter-State sale in view of the goods having been delivered to the assessee's depots situate outside the State. Further, the court also took note of the fact that tax had been levied under the Central Sales Tax Act on the sale by the Madura Mills to the assessee as an interState sale, that section 15(b) prohibits any further sale of the goods being taxed and that the first sale having attracted tax under the Central Act and the goods having thus suffered tax, there is no further and subsequent liability on the assessee to pay a further single point under the State law on its local sales. If, as contended by the assessee, the court had held that an Inter-State sale is always an inside sale, then it is unnecessary for the court to go into the question of applicability of section 15(b). As a matter of fact, the decision in Madura South India Corporation Private Ltd. v. Joint Commercial Tax Officer[1968] 21 S.T.C. 103. has been explained in a later decision in Anwaraulla AM. Ghouse and Co. v. State of Tamil Nadu[1971] 28 S.T.C. 610. In a context si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in sections 4, 6 and 9 of the State Act would show that in respect of declared goods the tax payable by a dealer is only on the sales or purchases inside a State, as the case may be, preceding the inter-State sale or purchase at the point specified against each in the Second Schedule. In this case the assessee has purchased cotton locally and then sold Inter-State to dealers outside the State. As per section 4 read with section 6 single point levy under the State Act can relate only to sales or purchases other than inter-State sale effected by the assessee. If that inter-State sale Is excluded as it should be under section 6 from the series of sales coming within the single point scheme of taxation, the assessee being the last purchaser of cotton is liable to tax under section 4 read with Schedule II. It is not, therefore, possible for us to accept the contention of the learned counsel for the assessee that the assessee is not the last purchaser in the State. The learned counsel is also not right in his contention that section 6 of the State Act will be inapplicable to sales of declared goods. If that contention were to be accepted, all declared goods will be outside the scope of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
