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TMI Blog1974 (8) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... who is the assessing authority, determined the total and taxable turnover at Rs. 8,85,407.09, which included a turnover of Rs. 2,40,223.84 relating to the purchase of paddy, and a sum of Rs. 10,183.25 relating to the purchase of firewood. The assessee contended that purchases of paddy were made from agriculturists or non-registered dealers and, as such, are not liable to be taxed under section 6 of the Act. The said contention was rejected by the Deputy Commissioner of Commer. cial Taxes, Dharwar, In the appeal preferred by the assessee. On second appeal to the Sales Tax Appellate Tribunal, Bangalore, it was held that the purchase turnover relating to firewood is not taxable, but the purchase turnover relating to paddy is liable to tax. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) and (5)(a) of section 5 of the Act which are relevant for the purpose read thus: "5. (1) Every dealer shall pay for each year tax on his taxable turnover at the rate of three per cent of such turnover: Provided that if and when to the extent to which such turnover relates to........paddy, rice including parched rice and beaten rice and bran ......the tax shall be calculated at the rate of one and a half per cent of such turnover................ (5)(a) A dealer whose total turnover in any year is less than twentyfive thousand rupees shall not be liable to pay tax for that year." Section 6, which was Introduced by Mysore Act 9 of 1970, reads thus: "6. Levy of purchase tax under certain circumstances.-Subject to the provisions of sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other than by way of sale in the State or despatches them to a place outside the State except as a direct result of sale or purchase in the course of inter-State trade or commerce, shall be liable to pay tax on the purchase price of such goods at the same rate at which it would have been leviable on the sale price of such goods under section 6................" Shah, J. (as he then was), dealing with the contention that the disputed turnover was not liable to tax under section 7 of the Madhya Pradesh General Sales Tax Act, 1958, stated thus: "The phraseology used in that section is somewhat involved, but the meaning of the section is fairly plain. Where no sales tax is payable under section 6 on the sale price of the goods, purchase tax is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les inasmuch as the transactions were not liable to tax at all under the Act. The language of section 7-A of the Tamil Nadu General Sales Tax Act, 1959, is not in pari materia with the language of section 6 of the Act whereas section 6 of the Act is in pari materia with section 7 of the Madhya Pradesh General Sales Tax Act, 1958. In view of the decision of the Supreme Court in Ganesh Prasad Dixit's case[1969] 24 S.T.C. 243 (S.C.). it cannot be contended any longer that if the sellers are not taxable because their individual turnovers were less than Rs. 25,000, the purchaser cannot be brought to charge under section 6. The meaning of section 6 of the Act which is not at all clear appears to us to be this: where the sale attracts the charge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enough if the seller is an agriculturist. The seller may be selling paddy grown on the land cultivated by a tenant or he may sell paddy purchased from others. If the seller exclusively sells the paddy grown on the land cultivated by him personally, then he is not a dealer and, in such an event, there is no charge to tax at all under sub-section (1) of section 5 of the Act. In such cases, the department cannot invoke the provisions of section 6 of the Act to levy tax at the purchase point. In the instant case, the assessee has merely stated that he purchased paddy from agriculturists or non-registered dealers. The assessing authority as well as the appellate authorities have not bestowed their attention to the determination of the question ..... X X X X Extracts X X X X X X X X Extracts X X X X
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