TMI Blog1974 (5) TMI 103X X X X Extracts X X X X X X X X Extracts X X X X ..... the point being the sale by the manufacturer in the case of goods manufactured in U.P. and the sale by the importer in the case of goods imported from outside U.P. The Act, as it stood on the material time, did not contain a definition of the word "importer". Such a definition was given in rule 2(d-1) of the U.P. Sales Tax Rules. Under sub-clause (c) of clause (d-1) an importer means "in a case where the goods are imported into Uttar Pradesh otherwise than as a direct result of a sale, the dealer who makes the first sale after such import". The petitioner was treated as an importer in respect of the turnover of vanaspati sold by him on commission basis and was subjected to tax. The petitioner did not raise any objection before the Sales Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turer or at the point of sale by the importer. This court held that as khandsari was taxable at the point of sale by the manufacturer In the case of goods manufactured in U.P., it was the manufacturer who alone was liable to tax, even though he had sold the goods not himself but through a commission agent. Here we are not dealing with a case of sale of vanaspati manufactured inside U.P. but with vanaspati manufactured outside U.P. The sale admittedly took place in U.P. and, as such, is liable to tax. Since it cannot be taxed in the hands of the manufacturer, he being a non-resident dealer, by virtue of rule 2(d-1) a person who effects the first sale in Uttar Pradesh of such goods shall be held to be importer for the purposes of the notifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to tax if imported from outside the State. Now the sale of vanaspati manufactured in U.P. is not exempt from tax. It will, therefore, be open to the State Government to levy a similar tax on vanaspati imported from outside Uttar Pradesh, without offending articles 301 and 304 of the Constitution. The mere fact that the incidence of tax in the case of vanaspati manufactured inside the State and the vanaspati imported from outside the State is different does not in any way violate article 304 of the Constitution. The last contention raised by Mr. Khare is that rule 2(d-1) of the U.P. Sales Tax Rules is ultra vires of the rule-making powers of the State Government conferred upon it under section 24 of the Act. The argument is that the Sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion agent who carries on the business of buying or selling goods or through whom the goods are sold or purchased on behalf of his principal is deemed to be a dealer for the purposes of the Act. Thus it is obvious that the State Government had ample power to levy tax upon persons like the petitioner under section 3-A of the Act itself. The fact that the State Government, instead of making a suitable provision in the notification issued under section 3-A, has chosen to frame a rule to achieve the same object, does not affect its jurisdiction to levy tax in cases like the petitioner. For all these reasons we are unable to quash the assessment orders and to grant to the petitioner the refund of the tax which has rightly been levied upon it. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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