TMI Blog1950 (7) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... of law. The appellant, who was the plaintiff, filed a suit against the Government for a declaration that the sales tax collected from him to the extent of Rs. 1,202-8-6 on the turnover calculated only on the price of the gunny bags containing the salt sold by him (excluding, of course, the price of the salt, which is exempted from sales tax) was illegally collected and ought to be refunded to him ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heard the learned counsel for the appellant and the learned Government Pleader contra. The learned counsel for the appellant relied on three main contentions. The first was that the appellant was not a "dealer" within the meaning of Section 2(b) as he was not carrying on the business of buying and selling gunny bags (which were admitted to be "goods"), but only the business of buying and selling s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the salt itself, as "necessity" will be of no avail as the customers could have supplied the gunny bags or taken away the salt themselves. The Government, we understand, have been moved subsequently for the amendment of the rules and to exempt the price of gunny bags also from sales tax, and that they have conceded this demand. That itself shows that, originally, there was no such intention on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e sale of gunny bags, and that the contention of the Com- mercial Tax Officer that he had made a profit of eight pies on each gunny bag was not well founded as the appellant was proved to have sold salt in some cases for less than the controlled price and the profit of 6 per cent. allowed to him. We consider that the question of profit and loss is irrelevant for this purpose. If a man is a "deale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o him any letter asking him to buy the gunny bags on his behalf, or sent him an advance for purchase of gunny bags; nor were accounts for the gunny bags alone rendered by the appellant to his customers. The question of the second payment of sales tax is not material as in some cases sales tax has to be paid, under our rules, twice over not only on these articles but in the case of many others. I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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