9911796707
TMI Blog1965 (9) TMI 43X X X X Extracts X X X X X X X X Extracts X X X X ..... June, 1959) the petitioner sold certain goods to some dealers in Patna and Calcutta. The goods sold by him are not declared goods. The concerned dealers in Calcutta and Patna were not registered dealers. The question for decision is whether the turnover relating to those sales are liable to be taxed under section 6 read with section 8(2) of the Act. The Sales Tax Authorities as well as the Sales Tax Appellate Tribunal have come to the conclusion that the turnover in question is liable to be taxed under section 6 in accordance with the rates prescribed in section 8(2). Aggrieved by that decision, the assessee has come up in revision to this Court. To answer the question of law raised for decision, it is necessary to refer to the relevant p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. Yaddalam Lakshminarasimhiah Setty and Sons[1965] 16 S.T.C. 231. Their Lordships interpreting section 6 observed: "Section 6 of the Central Act is the charging section. Subject to the other provisions contained in the Act, every dealer is liable to pay tax under the Act on all sales effected by him. It will be noticed that the liability is not absolute but subject to the other provisions of the Act. If the effect of another provision is to take away the liability, effect will have to be given to it. Section 8 prescribes the rates of tax to be levied. It is common ground that section 8(1) does not apply to the facts of the case, but the proviso is important as it indicates that in some cases falling within the proviso the rate may be nil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d dealer to whom the goods are sold containing the prescribed particulars in a prescribed form obtained from the prescribed authority; or (b) if the goods are sold to the Government, not being a registered dealer, a certificate in the prescribed form duly filled and signed by a duly authorised officer of the Government. " The effect of section 8(4) is that all transactions which would have ordinarily come within section 8(1) are excluded from the scope of that provision if the documents mentioned in 8(4), i.e., the 'C' form or 'D' form as the case may be is not produced before the appropriate authority. Therefore, before a transaction can come within section 8(1) the following requirements have to be fulfilled: (1) It must be a sale to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ates. The rates prescribed therein will only be applicable if the transaction is subject to tax under section 6. Now we shall proceed to interpret the true scope of section 8(2). On a plain reading of that section, it appears to us that all transactions which do not fall within the ambit of section 8(1) are taken in and included in section 8(2). As mentioned earlier, section 8 deals with the rates and it does not concern itself either with the levy or with any exemption thereof. Section 8(2) plainly says: "That the tax payable by any dealer on his turnover or any part thereof relates to the sale of goods in the course of inter-State trade or commerce not falling within sub-section (1)..." In our opinion all transactions which are subject ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for such a construction. In our opinion, the language of section 8(2) is quite plain and what it says is that any turnover not falling within section 8(1) comes within section 8(2). Section 8(2) deals with neither "the sales" nor "the goods" but with "the turnovers". Mr. Srinivasan contended that if two interpretations can be placed on a provision, that interpretation which favours the subject should be accepted. In support of that contention, he invited our attention to certain decisions. We are in full agreement with the principle. But in the instant case, as mentioned earlier, we see no possibility of two interpretations much less two reasonable interpretations. As stated earlier, in our opinion, the language of section 8(2) is plain an ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
