1973 (7) TMI 108

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..... r the assessment year 1968-69 they were assessed not only on their sales of fertilisers amounting to Rs. 12,94,284.46 but also on their sales of press-mud for Rs. 3,135.77. The mills disputed their liability to pay sales tax on their sales of fertilisers and press-mud. The assessing authority had overruled the objection of the mills. The Appellate Assistant Commissioner on appeal upheld the levy of tax on the sales of fertilisers during the assessment year 1965-66. But for the assessment year 1968-69 he has set aside the assessment on the sale value of fertilisers but upheld the assessment so far as it related to sales of press-mud. When the assessments came up before the Tribunal, the State filed an application for enhancement of the asses .....

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..... ither in fertilisers or press-mud for making the transactions of sale taxable. The Tribunal has specifically found that the mills have regularly purchased fertilisers of different kinds such as ammonium sulphate, potash, urea, bone-meal, sulphur phosphate and deoiled cake, and manufactured a new manure mixture by mixing the various kinds of fertilisers purchased by them in a fixed proportion as advised by the Director of Agriculture and supplied the said mixture to the cane-growers who happen to be the members of the society, which runs the mills. The said supplies made to the cane-growers had been shown in the mills' accounts as sales effected by the society. It is on these facts the Tribunal held that there were actual sales of the manu .....

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..... nd in the form of manure mixture. It is urged that bye-law 43 has to be construed as constituting the mills an agent of the sugarcane growers for the purchase of fertilisers. But we are not able to understand byelaw 43 as constituting the mills as an agent of the members for the purchase of either fertilisers or any other commodity. The bye-law merely enables the mills to advance cash up to a particular limit to the members of the mills. If the mills had paid for such advances partly in cash and partly in the form of manure, it has to be taken that the members took the entire advance in cash and utilised a portion of their advance for purchase of manure. We are, therefore, of the view that the reliance placed by the learned counsel on bye .....

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