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TMI Blog1974 (7) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... essing officer and the Assistant Commissioner of Sales Tax held that dal is a commodity different from green gram and black gram out of which it was produced and that the proviso to section 5(2)(A)(a)(ii) (hereinafter to be referred to as the proviso) is applicable. In second appeal the Tribunal held that to convert green gram and black gram into dal, all that was necessary is to remove the outer cover. By conversion they do not become two different commodities. The Commissioner of Sales Tax, Orissa (petitioner), filed an application for reference under section 24(1), which was rejected on 27th March, 1972. The petitioner approached the High Court under section 24(2). A statement of fact was called for and the following question has been re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he total turnover of the appellants for levying sales tax, the appellants claimed exclusion of the turnover relating to paddy over which purchase tax had been paid. It was held that the appellants were not entitled to reduction as there had been a change in the identity of the goods. The Supreme Court decision applies with full force to the case of conversion of black gram and green gram into dal. It is the common experience that if a customer asks for dal in the bazar the seller would not offer black gram or green gram out of which dal is made. Dal is required for purposes which would not be served by green gram or black gram. The purchaser would straight ask for green gram and black gram if he desires to convert them into dal. In common p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fied in the purchasing dealer's certificate of registration as being intended for resale by him in Orissa and on sales to a registered dealer of containers and other materials for the packing of such goods: Provided that when such goods are used by the registered dealer for purposes other than those specified in his certificate of registration, the price of goods so utilised shall be included in his taxable turnover." The object behind the aforesaid provision may be noticed to appreciate the scope of the proviso. A single point taxation system has been prescribed in the Act. The point of taxability is fixed under section 8. Ordinarily the point is postponed until in a series of sales the goods ultimately pass to a consumer or to an unre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his taxable turnover because of the declaration. Black gram and green gram were converted into dal which was sold inside Orissa. But the goods purchased were not sold in the same form and the declaration was infringed inasmuch as such goods as purchased were not sold inside Orissa as undertaken. 9.. To get out of this difficulty Mr. Agarwalla, who also argued the case as amicus curiae, contended that the certificate of registration of the dealer specified a class of goods, which included products of pulses and, as such, there was no violation of the declaration. The certificate of registration of the dealer specifies "all grams and their products and pulses and their products" amongst other goods to be purchased free of tax. Reliance i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g any class of goods, that goods of such class are covered by his certificate of registration;............... shall be punishable with imprisonment of either description which may extend to six months or with fine not exceeding one thousand rupees or with both, and when the offence is a continuing one, with a daily fine not exceeding fifty rupees during the period of the continuance of the offence." These three sections read together require the dealer to carry on the business in the class or classes of goods specified in the certificate of registration and to amend the certificate from time to time if any change takes place in the class of goods he deals with. He may also be penalised if he falsely represents while purchasing goods that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wheat free of tax as being specified in his certificate of registration and sell pulses by contending that all these goods come under one class for the rate of taxation and have been specified in the certificate of registration. just as wheat is different from pulses, pulse products are different from pulses. 12.. Mr. Agarwalla also referred to section 5(1), first proviso, which runs thus: "5. Rate of tax.-(1) The tax payable by a dealer under this Act shall be levied at the rate of 2 per cent on his taxable turnover: Provided that the State Government may, from time to time, by notification and subject to such conditions as they may impose, fix a higher rate of tax not exceeding 7 per cent or any lower rate of tax payable under this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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