9911796707
TMI Blog1975 (4) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... ee is a leading cashew trader. The year of assessment Is 1968-69. The total sales turnover reported was Rs. 2,60,54,546.76, which included the sales turnover of Rs. 53,176.95, being the sale proceeds of empty gunnies. The assessee claimed exemption from tax for the sale proceeds of empty gunnies on the ground that it was not his main business. The assessing authority took the view that purchases and sales of gunnies were an integral part of the cashew business and included this turnover also for assessment. The Appellate Assistant Commissioner confirmed the assessment. In second appeal the Appellate Tribunal held that the sale proceeds aforesaid is not exigible to tax. 3.. The Appellate Tribunal held that the amount of Rs. 53,176.95 repres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sustainable? and (E) Are not the findings and conclusion of the Appellate Tribunal holding that the sales of empty gunnies is not in the course of business vitiated due to a wrong approach to the question at issue?" 5.. Reliance was placed by the assessee before the Appellate Assistant Commissioner and the Tribunal on a decision of the Supreme Court reported in State of Gujarat v. Raipur Manufacturing Co. Ltd.[1967] 19 S.T.C. 1 (S.C.)., which laid down that for a sale turnover to be exigible for tax It should be In the course of business and that there should be frequency, continuity or periodicity In the sales. Reliance was also placed on a decision of this court in R. Narasimhan Poti v. State of Kerala[1971] 27 S.T.C. 39. 6.. The couns ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee reported in State of Gujarat v. Raipur Manufacturing Co. Ltd.[1967] 19 S.T.C. 1 (S.C.). have to be considered against the background of the amended sections of the Kerala General Sales Tax Act, 1963. We would extract the relevant definitions that are necessary for the disposal of this case. Section 2(viii) defines a "dealer". "(viii) 'dealer' means any person who carries on the business of buying, selling, supplying or distributing goods directly or otherwise, whether for cash or for deferred payment, or for commission, remuneration or other valuable consideration and includes................." The definition includes a casual trader also. A "casual trader" is defined in section 2(vii): "(vii) 'casual trader' means a person who h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that isolated transactions of commodities with which he did not deal should not be Included in the turnover liable to assessment. The observations in those decisions lose much of the weight in the light of the definition of a "dealer" including the casual trader also, who, according to the definition, is a person either as principal or agent or in any other capacity, has occasional transactions of a business nature involving buying, selling, supply or distribution of goods in the State, whether for cash or for deferred payment or for commission, remuneration or other valuable consideration. It cannot be said that the assessee in this case who deals in cashew-nuts cannot be brought within the ambit of a casual trader occurring in section 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al found as follows: "The gunny bags sold fetch considerable value and the sales are effected regularly and in the course of business and hence they cannot be treated as disposal of discarded and unserviceable articles. So also cashew shells are by-products and hence liable to the levy of tax." The assessee has therefore come to this court raising the following two questions: "(1) Whether, on the facts and in the circumstances of the case, the Tribunal Is right In holding that the assessee is a dealer in gunny bags and cashew shells? (2) Whether, on the facts and in the circumstances of the case, the Tribunal Is right in holding that the turnover relating to the discarded and unserviceable articles are taxable at the hands of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
