TMI Blog1956 (4) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... and cotton seeds as they were not sold but were consumed in manufacturing oil. The tax is payable by a dealer or casual trader under section 5(1) of the Hyderabad General Sales Tax Act only when the same are re-sold. 2.. To levy tax on purchases is ultra vires as the purpose of the enactment is to levy tax on sales only. 3.. The Deputy Commissioner is not justified in confirming the penalty of Rs. 1,000. Regarding items Nos. 1 and 2 of the grounds of appeal the learned authorised representative of the appellant vehemently argued that under section 5(1) of the Hyderabad General Sales Tax Act, 1950, tax can be levied only on sales but not on purchases. He has contrasted the provisions of charging sections under this Act with those of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as "any person who is engaged in the business of buying or selling goods in the Hyderabad State". If the contention of the appellant's representative is to be accepted the definition of dealer should be something like this, "A dealer means a person who carries on business of buying and selling the very goods he bought". Again the word "turn- over" is defined by section 2(m) of the Act as "the aggregate amount for which goods are either bought by or sold by a dealer", and under rule 5(2) of the Hyderabad General Sales Tax Rules, 1950, the turn- over should be calculated, in the case of groundnuts, on the amount at which they were purchased by the dealer. As this provision is in consonance with the right vested in the State under Item 54 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... even under section 4 every dealer shall pay tax on his turnover. Further, the appellant's representative contended that there should be more points of sale than one by successive dealers, if tax is to be levied under the Act. This contention is again erroneous because the intention of the Legislature incorporating section 5(1) cannot be anything other than to clarify the position of the provisions of section 4 as explained by us above. "Series of sales" do not mean to be that tax can be levied only when there are more points of sale than one. Tax can be levied under the Act even when there is only one sale, so long as such sale is by a dealer or to a dealer. If the definition of "sale" under section 2(k) is substituted in section 5(1) it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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