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TMI Blog1992 (1) TMI 322X X X X Extracts X X X X X X X X Extracts X X X X ..... of purchase by the spinning mill and in all other cases at the point of purchase by the last dealer who buys it in the State". During the assessment year 1984-85, the petitioner purchased cotton which he intended to resell, but it was destroyed in a fire accident and the turnover relatable to the damaged cotton was Rs. 1,14,67,488. The authorities below taxed the same on the basis that the petitioner was the last dealer who purchased the same within the State. The Tribunal upheld the assessment made by the sales tax authorities holding that last purchase was the taxable event and that as the cotton was not sold again, the petitioner became the last dealer in the State and therefore was liable to pay the sales tax, and rejected the contentio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll the goods but he cannot carry out his intention because the goods have been destroyed by fire. So far section 12(1)(c) is concerned and reading the said section along with section 14, the fact of the intention of the dealer is all important because of the nature of the undertaking given by the licensed dealer". In East Asiatic Commercial Company's case [1985] 59 STC 10, the Bombay High Court did not agree with that view of the Gujarat High Court and observed as follows: "With all due respect to the Gujarat High Court, we are unable to agree with the interpretation given by the Gujarat High Court to the language of the undertaking given by the licensed dealer. The certificate does not contain any statement relating to the present desire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... travention of terms of certificate.-(1) Where any dealer or commission agent has purchased any taxable goods under a certificate given by him under section 11 or 12 and contrary to such certificate, the goods are used for another purpose, or are not resold or despatched in the manner and within the period certified, then such dealer or commission agent shall be liable to pay purchase tax on the purchase price of the goods purchased under such certificate; and accordingly he shall include the purchase price thereof, in his turnover of purchases in his return under section 32 which he is to furnish next thereafter.....". In the present case the question is not whether the petitioner had acted contrary to any undertaking or statement given b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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