TMI Blog1971 (8) TMI 183X X X X Extracts X X X X X X X X Extracts X X X X ..... assessees had purchased groundnuts with a view to sell them. Hence we need not go into the question as to what would be the position in law where a miller purchases some groundnut for milling and the rest for sale. - Civil Appeal No. 1809, 1810, 1811, 1812 of 1968, - - - Dated:- 23-8-1971 - HEGDE K.S. AND GROVER A.N. JJ. M.C. Chagla, Senior Advocate (C.A. Kanyaka Prasad, R. Gopalakrishnan and D.P. Mahanty Advocates, with him), for the appellants. P. Ram Reddy, Senior Advocate (G.S. Rama Rao, Advocate, with him), for the respondents. -------------------------------------------------- The judgment of the court was delivered by HEGDE, J.- In these appeals by certificate a common question of law arises for dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rlier, is which were the events that gave rise to tax liability "first purchase", the crushing of the groundnut purchased or the "last purchase". Groundnut is one of the "declared goods" to be of special importance in inter-State trade or commerce under section 14 of the Central Sales Tax Act, 1956, and therefore in view of section 15(a) of that Act, the State is not empowered to levy purchase tax of more than three per cent. on the turnover in respect of those purchases and further the tax cannot be levied at more than one stage. Herein we are not concerned with inter-State sales or purchases. Now turning to the Act, section 2(f) defines "declared goods" as meaning goods declared under section 14 of the Central Sales Tax Act, 1956 (Cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of sales tax and purchase in the case of purchase tax is made, though the liability of the dealer can be computed only at the end of the year. The incurring of the charge is one thing and its computation is a totally different thing. Hence the turnover relating to the purchases with which we are concerned in these appeals became charged with the liability to pay tax as soon as those purchases were made by the assessees-millers. To restate the position, whenever a miller purchases groundnut, the turnover relating to that purchase becomes exigible to tax subject to such exemptions as may be given under the Act. This means that as soon as a first miller purchases ground- nut, the turnover relating to that purchase-the question of exemption apa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f some of the assessees a part of the groundnut purchased had been sold to other millers; hence in those cases, the assessees must be taxed only in respect of that part of the turnover which relates to groundnut which they had crushed for extracting oil and in the case of the remaining part, it is the last dealer who purchased the same should be taxed. This contention again is unacceptable. As mentioned earlier the event which attracted tax is the act of the miller purchasing groundnut and not his act of crushing the groundnut purchased or dealing with that groundnut in any other manner. We have earlier mentioned that the very act of purchase by a miller attracts the liability to pay tax under section 5 read with Schedule III, item 6. His s ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
