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TMI Blog1994 (9) TMI 339X X X X Extracts X X X X X X X X Extracts X X X X ..... he year under consideration it had disclosed its gross turnover at Rs. 60,42,610 and taxable turnover at Rs. 28,87,103.26. It had duly filed its return and paid tax on the turnover declared as taxable. On the taxable turnover the dealer had realised a sum of Rs. 78,448 as sales tax from the customers to whom the goods were sold. The assessing officer determined taxable turnover at Rs. 29,20,680. The revisionist then filed an appeal to the Deputy Commissioner (Appeals) contending that it had purchased raw hides and skins from registered dealers without issuing form 3A and that he sold the same to its customers in the same condition. The contention of the revisionist was that the curing and tanning of the skins did not change their nature and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evidence to show that the persons who sold the goods to the assessee were dealers within the meaning of section 2(c) of the U.P. Sales Tax Act. The Tribunal also held that because of section 29-A of the U.P. Sales Tax Act the amount realised by the dealer as sales tax could not be refunded. 5.. Hides and skins, whether in raw or dressed state are declared goods under section 14 of the Central Sales Tax Act, section 3-AA of the U.P. Sales Tax Act as it stood at the relevant time reads as under: Section 3-AA. Rate and point of tax in respect of certain goods.-Subject to the provisions of section 3-D, the turnover in respect of goods declared under section 14 of the Central Sales Tax Act, 1956, to be of special importance in inter-State t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of sale to the consumer. Section 3-AAA prescribes which sales will be deemed to be sales to a consumer. Then comes section 3-AAAA which has been amended by U.P. Ordinance No. 7 of 1994 substituting a new section with retrospective effect from April 1, 1974. The substituted section 3-AAAA reads as under: 3-AAAA. Liability to tax on purchase of goods in certain circumstances.Subject to the provision of section 3, every dealer who purchases any goods liable to tax at the point of sale to consumer (a) from any registered dealer in circumstances in which no tax is payable by such registered dealer, shall be liable to pay tax on the purchase price of such goods at the same rate at which, but for such circumstances, tax would have been paya ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er is liable to pay tax on the purchase price of goods that are liable to tax at the point of sale to consumer except in the circumstances mentioned in the proviso. The revisionist s contention was that it purchased the hides and skins from registered dealers without furnishing form 3A and, therefore, the selling dealers may be subjected to tax under section 3-AAA and that the revisionist sold them in the same form and condition in which he had purchased them, thus, complying with clauses (i) and (iii) of the proviso. The revisionist also relies on the explanation which says that the dressed hides and skins or tanned leather after dressing or tanning raw hides and skins purchased as aforesaid shall be deemed to be in the same form and condi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he question is whether the revisionist purchased the goods from registered dealers so that the sales by such registered dealer to the revisionist could be treated as sales to a consumer. The Tribunal has recorded a finding that the revisionist had failed to establish that the purchases of the goods in question were made from registered dealers. Learned counsel for the assessee challenged this finding and placed reliance on a list of purchases filed as annexure 1 to the affidavit in the present revision petition. It has been contended that this list was filed before the Deputy Commissioner (Appeals). The mere filing of such a list could not prove that the goods which were sold by the assessee for a consideration of Rs. 28,87,103 were purch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conditions are that the goods shall be liable to tax at the point of sale to a consumer and the rate of tax shall not exceed certain limit. Therefore, there has to be another section under which the tax could be levied subject to the restriction of section 3-AA. It is section 3-AAAA that creates the liability for payment of tax in respect of goods liable to tax at the point of sale to the consumer. Thus, while section 3-AA states that the declared goods shall be liable to tax at the point of sale to the consumer only, it is section 3-AAAA which says under what circumstances those goods would be liable to tax and under what circumstances the sale thereof would be exempt. Therefore, it was section 3-AAAA which could be invoked for subjecting ..... X X X X Extracts X X X X X X X X Extracts X X X X
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