9911796707
TMI Blog2000 (9) TMI 1021X X X X Extracts X X X X X X X X Extracts X X X X ..... al is justified to support levy of purchase tax on paddy remaining stock as on April 1, 1978 and not purchased on or after April 1, 1978? 2.. The facts of the case are that paddy was both taxable at the sale point and purchase point before April 1, 1978 in the following manner: (i) S.R.O. No. 901 of 1976 dated September 1, 1976 with effect from September 1, 1976 by item No. 24A of the list of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al No. 14 of the list of taxable goods paddy was inserted, that means whether paddy purchased for conversion into rice or broken rice or not becomes taxable at purchase point. In view of these notifications paddy becomes exempt from tax at the point of sale. 3.. Petitioner, which is a mill has purchased paddy for the purpose of conversion into rice and broken rice and as the same was taxable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nversion into rice or broken rice the same is not taxable on the purchase point but the same is taxable at the sale point, that means in the hands of the seller and the miller being purchaser no tax liability ensured to the miller-petitioner for such stock of paddy which has not been utilised by it for conversion into rice or broken rice. But the position has changed with effect from April 1, 1978 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ck of paddy which was purchased at a lesser percentage of tax, i.e., at 3 per cent made sales of those paddy in stock after July 1, 1974 by the date of which rate of tax has been increased from 3 per cent to 5 per cent. Their Lordships of the apex Court have held that the dealer is liable to pay tax at 3 per cent as purchases took place prior to July 1, 1974, i.e., at the prevailing rate at the ti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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