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TMI Blog1990 (11) TMI 387X X X X Extracts X X X X X X X X Extracts X X X X ..... ainst the petitioner for the year 1980-81 dated March 3, 1984. Finally, there was a prayer to interdict respondents 1 to 3 from taking revenue recovery proceedings to realise the arrears in pursuance of exhibit P3. A learned single Judge of this Court dismissed the original petition, by judgment dated May 29, 1990. The judgment is reported in [1991] 80 STC 444; (1990) 2 KLJ 80; (1990) 2 KLT 436 (Hill Produce Corporation v. State of Kerala). 2.. We heard counsel for the appellant, Mr. P.A. Mohammed (T). The brief facts of the case are as follows: The appellant/petitioner is a firm. It purchases hill produce such as pepper, ginger, etc., within the State. A portion of the goods so purchased is sold within the State. Another portion is sol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessing authority taxed the purchase turnover of pepper and dry ginger at the hands of the appellant treating it as the last purchaser of those goods within the State. Since it was not established by production of records to show that it was still retaining the title of the goods, the learned single Judge held that it is evident that the appellant has been assessed on the turnover of pepper despatched outside the State treating the turnover as taxable under section 8 of the Act, since it attained the quality of last purchase. It was further held that under section 5A read with section 8, the appellant's purchase of pepper will be exigible to tax having attained the quality of last purchase when the goods have been exported outside th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of the manufactured goods, and not the purchase and the levy has no direct connection with the transaction of purchase of raw materials. So understood, the said case is no authority, to hold that section 8 of the Kerala General Sales Tax Act is in any way invalid or improper. What section 8 postulates is that in the case of goods taxable at the single point, the taxable point is fixed at the stage of purchase or sale effected immediately before the export of the goods. The section provides that in a case where tax is leviable at one point, in a series of purchases in the State, it is deemed to have concluded at the stage of purchase effected immediately before the export of such goods and it was held to be a legislation coming under ent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... closing stock held by a dealer, whether inside or outside the State, cannot be taxed. In Goodyear India Ltd. case [1990] 76 STC 71, the Supreme Court held that the taxable event in the said case was the consignment of the manufactured goods and not the purchase. In this view, it was held that the levy would lose its character of purchase tax on the transaction and so bad in law. The decision in Goodyear India Ltd. case [1990] 76 STC 71 (SC) is no authority for the proposition that where in the case of any goods tax is leviable at one point in a series of sales or purchases, it is not open to the State to say that in the case of goods exported out of the State to any place outside India or to any other State in India, such series be deemed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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