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2012 (3) TMI 384 - GAUHATI HIGH COURTValidity of levy of purchase tax on the transaction of turnover of purchase of raw material, i.e., oil-seeds referable to oil-cake transferred outside the State on consignment basis in which event no sales tax is attracted Held that:- In the present case, the cotton seed purchased by the dealerpetitioner was subjected to manufacturing process. It resulted into extraction of oil which was the primary product. However, it also brought into existence the oil-cakes (khal). The undisputed facts are that the oil so extracted and a part of oil-cakes were sold in the State of Punjab and on account of the provisions made in section 5(2)(a)(ii) of the Act such sales were not to be included in the taxable turnover. However, purchase tax on such purchase made by the dealer-assessee is leviable under section 4B of the Act in respect of those transactions which are not to be included in the taxable turnover under section 5(2)(a)(ii) of the Act. The sale of oil-cakes outside the State of Punjab is not covered by any of the clauses of section 5(2)(a)(ii) of the Act. Therefore, the event of tax would come into existence on such purchases of the cotton seed to the extent the by-product oil-cakes has been sold outside the State of Punjab. Do not find any reason to interfere with the order passed by the statutory authorities levying purchase tax on the purchase value of oil-seeds referable to the production of oil-cakes which is disposed of by way of stock transfer in a situation where on sales tax is attracted. W.P. dismissed.
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