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TMI Blog1995 (1) TMI 317X X X X Extracts X X X X X X X X Extracts X X X X ..... erms set out in section 24 of the Act?" 2.. The assessee had made an application dated January 19, 1979 to the Sales Tax Officer (Registration Branch), Bombay for grant of authorisation under section 24 of the Bombay Sales Tax Act, 1959 ("the Act"). In support of his application, the assessee pointed out that he had despatched one tanker of Palmolin oil to one M/s. Bansilal Gupta and Company at Jaipur for sale on consignment basis. The said tanker of oil was sent through M/s. Rajpal Bulk Carriers, a transport contractor, under transport receipt No. 9618 dated May 18, 1978. The said goods, according to the assessee, were sold on his behalf by his commission agent M/s. Bansilal Gupta Co., at Jaipur for Rs. 66,544.37. In support of the abo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isation." The assessee went in further appeal to the Maharashtra Sales Tax Tribunal ("the Tribunal"). The Tribunal was also of the same opinion that in order to get authorisation under section 24 of the Act, the goods despatched outside the State "must be sold within the State of Maharashtra". The Tribunal, therefore, confirmed the order of the Assistant Commissioner and the Sales Tax Officer and dismissed the appeal. Hence, this reference at the instance of the assessee. 3.. Mr. B.C. Joshi, learned counsel for the assessee, submitted before us that the Tribunal has committed a manifest error in law in interpreting the section 24 of the Act. According to him, section 24 of the Act provides in clear and unambiguous terms that a registe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y. Section 24 of the Act deals with authorisations. It lays down the requirements on fulfilment of which a registered dealer can apply for authorisation. This section as it stood at the material time, reads as follows: "24. Authorisations.-Where, during the previous or current year, the turnover of sales of a registered dealer of goods (a) which are exported by him from the State outside the territory of India, or despatched by him from the State to any place in India outside the State; and (b) which are sold by him to any authorised dealer and exported or despatched by that dealer to any destination referred to in clause (a), exceeds thirty thousand rupees, he may apply for an authorisation to the Commissioner. Subject to the prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aler under the Central Sales Tax Act, 1956 ............. then, notwithstanding anything contained in sections 7, 8, 9 or 10 on such sale of goods, the dealer shall be liable to pay a sales tax at the rate of 4 paise in the rupee if such sale falls under clause (1) or (2)......" (Emphasis* supplied) A conjoint reading of the above provisions makes it clear that a person who holds authorisation granted under section 24 of the Act, is entitled to purchase taxable goods at a lower rate of 4 paise in a rupee. 5.. The requirement for grant of authorisation under section 24, with which we are concerned in this case, is that during the previous or current year the turnover of sales of a registered dealer- (a) of goods which are exported by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 24 of the Act, "turnover of sales" can only mean "turnover of sales of the goods despatched by the assessee outside the State". It cannot be interpreted to mean "turnover of sales made within the State". Any such interpretation, according to the learned counsel, will go counter to the clear language of section 24 and will have the effect of rendering the same unworkable. Counsel for the Revenue, however, says that "turnover of sales" having been defined in clause (36) of section 2 of the Act, it must receive the same meaning wherever it appears in the Act. According to the learned counsel under clause (36) of section 2, "turnover of sales" means the aggregate of the sale price of the goods sold within the State. 6.. We have carefully con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o despatch to any place outside the State and question of turnover of such despatches would not arise. 7.. It is therefore clear that in the context of section 24, the expression "turnover of sales" cannot be interpreted to mean "turnover of sales of goods made in the State". Such an interpretation will lead to absurdity and make section 24 wholly unworkable. Viewed in the context of section 24, the expression "turnover of sales of goods which are despatched by the dealer applying for authorisation to any place in India outside the State", will mean and only mean the "sale price of the goods received or receivable by the dealer in respect of the sale of those goods in the place outside the State where they were despatched by him". This is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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