1973 (7) TMI 73

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....tton and they being "declared goods" are liable to a single point tax under section 5(4) read with Schedule IV of the Act. Prior to 1st April, 1970, the point of levy was purchase by the last dealer in the State liable to tax under the Act. By Mysore Act 9 of 1970, the point of levy was changed and it was made "purchase by the first or earliest of the successive dealers in the State" liable to tax under the Act. It is common ground that the amendment changing the point of levy has no retrospective or retroactive operation and is operative only with effect from 1st April, 1970. The question before the Sales Tax Appellate Tribunal in all the cases relating to the respondents was whether their respective turnovers relating to groundnut and/or....

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....adras that a tax under the Act is a yearly tax and if that is so, then what happens in subsequent years cannot be taken into consideration in determining the taxability of any purchases inside the State of declared goods and, further, that the taxable event is the last purchase in the State during the assessment year and if stocks are held at the end of the assessment year, it follows that an assessee holding stocks is the last purchaser in the State. That argument was repelled by the Supreme Court and it was held that a dealer is not liable to pay tax on the purchases until the purchases acquired the quality of being the last purchases inside the State. This is what the Supreme Court stated: "......It is true that sections 3 and 4 speak o....