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TMI Blog1973 (5) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... or who was the first purchaser? (2) Whether in the facts and circumstances of the case, the Tribunal was right in allowing the exemption claimed and reducing the assessment to returned figure and thereby accepting the return of the dealer?" 2.. The assessee is a registered dealer under the Central Sales Tax Act (hereinafter referred to as the Central Act) bearing No. GAC-I-5-45 and deals in mahua seeds as one of the items of trade. Mahua seeds are declared goods under the Central Act. During 1967-68 the assessee sold mahua seeds in the course of inter-State trade. On scrutiny of the assessee's accounts it transpired that he had claimed exemption on a turnover of sale to the tune of Rs. 23,686 of mahua seeds on the ground that purchase tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ealer who had paid the purchase tax himself on the declared goods and another who had not paid the purchase tax and is thus a subsequent purchaser from the one who had initially paid the purchase tax. I do not agree that there is any emphasis put by this notification on the dealer which is obviously attached to the goods that are declared." In the reference application made by the State of Orissa it was contended before the Tribunal that section 15 of the Central Act imposed restrictions and conditions in regard to levy of tax on sales or purchases of the declared goods within the State. Sub-section (a) thereof provides that tax payable inside the State shall not exceed the prescribed rate and also such tax shall not be levied at more than ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e or commerce, the tax so levied shall be refunded to such person in such manner and subject to such conditions as may be provided in any law in force in that State." 4.. In exercise of the power vested in the State of Orissa under sub-section (5) of section 8 of the Act, the following notification had been made on 8th December, 1966: "No. 43637-C.T.A.-200/66-F.-In exercise of the powers conferred by sub-section (5) of section 8 of the Central Sales Tax Act, 1956 (74 of 1956), the State Government having been satisfied that it is necessary to do so in the public interest hereby direct that in respect of all declared goods sold in the course of inter-State trade or commerce, no tax under the said Act shall be payable by any dealer, having ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax shall not be claimed or has not been made. Before the Tribunal the assessee had contended that under the scheme of the Orissa Act purchase tax is paid at the first point and subsequent purchases are no more exigible to purchase or sales tax. In respect of declared goods the Central Act also prohibits levy of tax at more than one point. The assessee had, therefore, contended that the first condition under the notification had been satisfied. Identity of the goods and not the identity of the person in whose hands the intraState sale or purchase had been taxed was material according to the assessee. The revenue had, however, contended that unless the goods which ultimately came in the stream of inter-State trade or commerce had been taxed i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aState sale or purchase, a second set of tax under the Central Act is not payable. But if the Central tax has been levied it is made refundable on proof of the fact that on the same goods at an earlier point tax under the State Act had been paid. 7.. The only question of difference between the learned counsel for the parties is as to whether the person paying the intra-State tax must be the assessee under the Central Act. We do not find support for the stand of the revenue because the two statutes, so far as this aspect of the matter is concerned, are complimentary to each other and one pattern has been followed in both the statutes. Ordinarily, under the Orissa Act purchase tax or sales tax is payable only at one point which is to be pres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reference jurisdiction to decide whether the notification is ultra vires. It is the State's notification and that it was bad had never been contended, and at any rate in our reference jurisdiction we are not competent to hold that it is bad even if it is really bad. 9.. Our answers to the questions shall, therefore, be: (1) On the facts and in the circumstances of the case, the dealer is entitled to exemption of Central sales tax on the turnover of sales on the purchase of which tax had been levied inside the State. It would not make any difference if the purchase tax had not been paid by the dealer but by his vendor who was the first purchaser. (2) On the facts and in the circumstances of the case, the Tribunal was right in allowing th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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