9911796707
TMI Blog1990 (8) TMI 368X X X X Extracts X X X X X X X X Extracts X X X X ..... eel rounds, flats, etc., sold to M/s. Canara Wire and Wire Products, Yeyyadi, Mangalore, were goods which had been re-rolled items by the principals of the assessee who claimed to be only an agent. It is clear from the assessment order as at annexure-A that in support of exemption claimed, form No. 32 was not produced, as an agent of the principal as per section 11(1) of the Act. Therefore, the assessing authority came to the conclusion that the sales made were re-rolled iron steel items out of tax-paid ingots. The assessee being the first dealer in mild steel rounds was liable to pay tax in the various re-rolled items of iron and steel as the sales were made within the State only. Therefore the entire turnover, as admittedly the total tu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nguided arbitrary power on the assessing authority to bring to charge even the first purchase or the first sale which is the point at which the mild steel ingots are subjected to tax under the Fourth Schedule to the Act. 4.. This argument is rather novel because all sales must necessarily include a purchase and vice versa, in that all purchases do constitute an element of sale, in that there is a seller who conducts the sale and there be a purchaser who purchases it. Therefore the so-called vagueness or arbitrariness in the language employed in sub-section (4) is more imaginary than real. 5.. The case before the assessing authority put forward by the petitioner-assessee was not that there was any vagueness in determining the total and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s exhausted it will not be open to the High Court to interfere except where there is total want of jurisdiction to conclude an assessment under the taxing statute. In that view of the matter this stand is not of any assistance to the petitioner. 7.. The second decision relied upon by the learned counsel is that of the Supreme Court in Govind Saran Ganga Saran v. Commissioner of Sales Tax [1985] 60 STC; AIR 1985 SC 1041. Our attention was drawn to page 4 of STC (paragraph 6 of AIR) where it is observed by the Supreme Court that the components which enter into the concept of a tax were wellknown. The first was the character of the imposition known by its nature which prescribed the taxable event attracting the levy; the second was a clear i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, the decisions relied upon, is against the assessee. In that view of the matter it is difficult for us to hold that there is conferment of any arbitrary power on the assessing authority to pick and choose the seller or the purchaser to bring to tax in respect of declared goods at the point of first sale in the State in accordance with sub-section (4) of section 5 of the Act. 11.. A feeble attempt was made by Mr. Shivaram, counsel appearing for Mr. K. Srinivasan, learned counsel for the petitioner, that rule 6 did not provide any guidelines to the assessing authority to arrive at the taxable turnover, total turnover or turnover itself. We do not think there is any substance in that assertion because rule 6 has been operative since the f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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