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TMI Blog1972 (7) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... nior Advocate (G. Narayana Rao, Advocate, with him), for the appellant in C.A. Nos. 323 and 1312 of 1969. P. Basi Reddy, Senior Advocate (B. Parthasarathy, Advocate, with him), for the respondent in C.A. Nos. 323 to 332, 1312 and 1174 of 1969. G. Narayana Rao, Advocate, for the appellants in C.A. Nos. 324 to 332 and 1174 of 1969 and 1518 and 2117 of 1970. -------------------------------------------------- The judgment of the court was delivered by BEG, J.-In these appeals by certificate only one question of law has been argued. It may be formulated as follows: "Is any part of the provisions of item 6 of Schedule III of the Andhra Pradesh General Sales Tax Act, 1957 (6 of 1957) (hereinafter referred t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Schedule III reads as follows: ----------------------------------------------------------------------- Description of goods Point of levy Rate of tax ----------------------------------------------------------------------- Groundnuts When purchased by a miller 3 naya paise other than a decorticating in the rupee." miller in the State, at the point of purchase by such miller, and in all other cases at the point of purchase by the last dealer who buys in the State. Groundnuts have been declared as goods of special importance in inter-State trade or commerce under section 14 of the Central Act. Section 15 of the Central Act lays down: "15. Every sales tax law of a State shall, in so far as it imposes or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also again in the hands of "last dealers" to whom they may sell. The short answer to this argument could be that the validity of the levy of a tax upon a purchase by a last dealer could be questioned by one of the appellants only if he was being taxed as a last dealer and not as a miller. It is apparent that they are being taxed at the point of purchase by them as millers only. When they purchase groundnuts as millers they do so presumably in order to convert the groundnuts into another product altogether, and, they would, therefore, presumably be last purchasers of groundnuts as "groundnuts". They may be selling their products in forms other than groundnuts. The appellants are, however, not questioning the validity of a tax upon any sales ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hases 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 groundnuts, the turnover relating to that purchase-the question of exemption apart-becomes liable to tax. This is also the view taken by the High Court." It may be mentioned here that, in the above-mentioned case, the assessees had already been taxed and one of the arguments advanced there was that the part of the taxed turnover which relates to groundnut which was sold by the assessee-miller to other millers should be excluded because it was not dealt with by him as a miller but as a dealer who was not the last purchaser. This court said: "The next ar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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