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TMI Blog1985 (12) TMI 353X X X X Extracts X X X X X X X X Extracts X X X X ..... of the turnover of gum not resold within the State as per the declarations given in form S.T. 17? (ii) Whether the only remedy open to the department following the use of form S.T. 17 for a purpose other than that declared was to proceed under section 16(1)(k)? (iii) Whether the Board of Revenue was justified in holding that no tax was payable by the dealer because of the provisions of section 5A of the Rajasthan Sales Tax Act?" The regular assessments of the dealer-assessee (respondents) in respect of the assessment years 1969-70 and 1970-71 under section 10 of the Rajasthan Sales Tax Act, 1954 (No. 29 of 1954) (for short "the Act") were completed on January 31, 1974. Subsequently, the assessing authority discovered that the dealer-a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to due tax under the provisions of the Central Sales Tax Act by the assessing authority vide his order dated January 31, 1974, passed under section 9 of the Act. Therefore, the goods in question are not liable to be taxed under section 5 of the Rajasthan Sales Tax Act and the purchase tax assessed is clearly unwarranted and is accordingly set aside." The Commercial Taxes Officer, Chittorgarh (the assessing authority), filed two revisions in respect of the assessment years 1969-70 and 1970-71, before the Board. By its order dated June 21, 1977, the revisions were dismissed holding that the case of the dealer clearly fell within the exception provided in section 5A of the Act and, therefore, the question of levy of tax did not arise. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat where a dealer in goods which are exempted from tax unconditionally, sells any bardana, container or any other packing material received along with such goods at the time of purchase thereof by him, the taxable turnover in respect of such sales shall, at the option of such dealer to be exercised in the prescribed manner, be one per cent of the aggregate amount of the sale prices received or receivable by him in respect of the sale or supply of such goods and of such bardana, container or material: Provided further that when any dealer has purchased any goods without paying any tax on the strength of any declaration furnished by him and the said goods are used by him for any purpose other than the one mentioned in the declaration, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 5 of the Act shall be at the first point in the series of sale by successive dealers. Explanation.-For the purposes of this rule, the first point in the series of sale shall mean the first sale in such series by a registered dealer and the second and subsequent points shall be determined accordingly while the last point in the series of such sale shall be the last sale in such series to an unregistered dealer or to a consumer or to a registered dealer for purposes other than resale within the State or in case of goods specified by the State Government, the last point in such series shall also be the last sale to a registered dealer in whose registration certificate such goods are recorded for resale by him to an unregistered deal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... registered selling-dealer for purchasing goods for the sale within the State, the tax should have been levied on the sales effected by the latter. A transaction of sale is also a purchase transaction for the purchasing dealer. As the sales of selling registered dealer, which were also purchases of non-applicant-dealer, were not taxed on account of furnishing form S.T. 17, it follows that the purchase price of the dealer, i.e., the sales of registered selling-dealer are being taxed by including the same in taxable turnover. It is, therefore, wrong to suggest that it is a purchase tax under section 5A of the Act. As stated earlier, the gum is the commodity taxed at the last point. The explanation to rule 15 of the Rules clarifies this, as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e dealer-assessee, were not taxed on account of furnishing wrong declaration in form S.T. 17, the purchase price of the dealer-assessee, i.e., the sales of registered selling-dealer are being taxed by including the same in the taxable turnover. We are, therefore, of the opinion that in view of the explanation to rule 15 of the Rules and the second proviso to section 2(s) of the Act, the turnover of gum was not resold within the State as per the declaration given in form S.T. 17. Question No. (1) referred by the Board, is answered in the affirmative, i.e., in favour of the department and against the assessee. Question No. (2). Section 16(1)(k) of the Act is as under: "16. Offences, penalties and prosecutions, etc.-(1) If any person(k) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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