TMI Blog1967 (8) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... that the petitioner sold finished articles of jewellery and that no portion of the turnover could be regarded as labour charges. But he thought that the sales consisted of distinct sales of component parts of a manufactured jewel. According to him when there was a sale of a jewel in which a precious stone had been set, there was a sale of that precious stone and a sale of the gold in which it was embedded. The position, he thought, was similar when there was a sale of a jewel in which an artificial stone had been set. So he thought that tax was payable at 1 per cent. of the turnover which related to the sale of gold, at 3 per cent. of the turnover which related to the sale of artificial stones and at 5 per cent. of the turnover with respec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er tax specified in the third column of the 64th item in the Second Schedule to the Act was payable. The Sales Tax Appellate Tribunal did not have any doubt in its mind about the correctness of the finding recorded by the Commercial Tax Officer and the Deputy Commissioner that the contract of sale between the customer and the petitioner in each case was a contract for the sale of a finished article of jewellery. That being so, if nothing else could be said about it, the tax payable was the tax specified either in sub-section (1) of section 5 which is 2 per cent. of the turnover or the tax specified in the proviso to that sub-section which is 11/2 per cent. of such turnover. There is no difficulty presented in regard to the rate at which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etitioner to any one of his customers, it was of the opinion that if an article in which a precious stone was set, was sold by the petitioner to his customer, that sale was a sale of precious stone. Support for this view was deduced from the words "whether they are sold loose or as forming part of anything in which they are set" occurring in the second column of the 64th item of the Second Schedule which has been extracted above. We do not think that the interpretation placed by the Tribunal on these words can be supported. A reference to the Second Schedule is to be found in sub-section (3) of section 5 which reads: "5. (3) Notwithstanding anything contained in sub-section (1), the tax under this Act shall be levied-(a) in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only in a case where stones set in that way are themselves sold as such. But if there be no such contract of sale, and in consequence there is no sale of such precious stones, those words in the 64th item of the Second Schedule cannot assist a demand for the payment of tax at the rate specified in the third column against that entry. Now the finding of the Commercial Tax Officer and the Deputy Commissioner from which the Sales Tax Appellate Tribunal did not dissent, was that the sale was of finished article of jewellery, the component parts of which were either gold and a precious stone or an artificial stone. Such is the effect of that finding. So long as that finding was not disturbed by the Sales Tax Appellate Tribunal and it was not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of labour charges, recorded a clear finding that the sales were sales of finished products of jewellery. He did not record a finding that there was a sale of either gold, or a precious stone or an artificial stone as such. Whatever may be the return produced by a dealer under the Sales Tax Act and whatever may be the rate at which a dealer claims to be charged, it is the duty of the Commercial Tax Officer to make a determination of the tax really payable under the provisions of the Act which are applicable to the sales, having regard to the character of those sales determined by him. That being so, if the Commercial Tax Officer had no doubt in his mind that the sale in the present case is a sale of a finished product of jewellery, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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