Forgot password
1990 (1) TMI 280 - HC - VAT and Sales Tax
Issues:
1. Whether the petitioner is the last purchaser of cotton in the State for the assessment years 1974-75 and 1975-76.
2. Whether the turnover in question should be treated as an intrastate sale or an inter-State sale.
3. Whether the turnover, already subjected to tax at the last point of purchase, can be taxed again.
Analysis:
1. The petitioner, a dealer in cotton yarn, had a sales depot in Tamil Nadu and spinning mills in Kerala. The authorities found the petitioner to be the last purchaser of cotton in the State, leading to the reopening of assessments for the relevant years. The defense argued that the petitioner was not the last purchaser, but the seller was, and the turnover should be treated as an inter-State sale. However, the authorities upheld the last purchaser status, justifying the tax on the purchase of cotton.
2. The petitioner contended that the transactions were inter-State sales and not liable to tax in the State. Despite arguments by the petitioner's counsel, the court agreed with the authorities' findings that the transactions were intrastate sales. The court found the reasoning provided by the lower authorities satisfactory and rejected the petitioner's claims regarding the nature of the transactions.
3. The petitioner relied on a Supreme Court judgment regarding the taxation of turnover already taxed at the last point of purchase. The court examined the Supreme Court ruling and applied its ratio to the present case involving cotton turnover. The court concluded that the turnover, having been taxed once and being declared goods, could not be taxed again. Therefore, the assessments on the disputed turnovers were set aside, following the precedent set by the Supreme Court judgment.
In conclusion, the High Court allowed the tax cases, ruling in favor of the petitioner and setting aside the assessments on the disputed turnovers of cotton. The court held that the turnover, having already been taxed and being declared goods, could not be subjected to tax again.
9911796707
Advanced Search 
