TMI Blog1952 (4) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... ), by virtue of item 18 of the old unamended Schedule II. 1. The departmental officers have held that the applicant effected "sales", when he handed back to his customers the yarn that they had brought to him, after dyeing it according to their instructions. In the "sale price" has been included the amounts recovered by the applicant (a) as dyeing charges, (b) as "sales tax", and (c) as packing charges. The gross turnover thus determined is Rs. 1,24,881 out of which (b) accounts for Rs. 1,068 and (c) for Rs. 3,645. The gross turnover is thus made up very largely of "dyeing charges". Out of these dyeing charges, exemption has been given only in respect of a small sum of Rs. 3,720 representing the charges recovered from registered dealers i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the estimates made of the relative values of the printer's ink in the one case and of the dyeing materials on the other are correct. Nevertheless, the question that arises is whether just because of this difference in relative values a transfer of property may be considered to have taken place in the latter case. If so, what are the goods in which property has been transferred? The simple fact is that the customer, who brought grey yarn to the dyer, has got back in its place dyed yarn, that is to say, the grey yarn with a colour given to it by the dyeing materials used. The colour itself has no tangible existence; and it will be doing violence to language to say that the customer has received dye-stuffs of any kind along with his yarn. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... escape taxation altogether, if a view contrary to theirs were taken. The applicant apparently bought the dyeing materials tax-free, in his capacity as a registered dealer who was to "manufacture" for resale. No tax was recoverable from his "vendees" in respect of yarn of 25 counts and below. The provi- sions of the Sales Tax Act would thus be defeated, if the transactions of the applicant with his customers were not to be taxed. This, it would appear, is their simple reasoning; and it is significant that the amount charged to registered dealers, in respect of yarn of over 25 counts has not been taxed, in view of the fact that recovery was possible later from those registered dealers. The solution to the department's difficulties, it seems ..... X X X X Extracts X X X X X X X X Extracts X X X X
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