1984 (2) TMI 314

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..... nned and sold as bales of cotton. The cotton seeds separated therefrom were also sold. The total purchase made by the petitioner was 8480.24 quintals. Upon ginning, the cotton yielded was 2884.13 quintals and the quantity of cotton seeds obtained was 5434.30 quintals. There was thus a shortage of 161.81 quintals which was nearly two per cent of the total purchase turnover. The petitioner submitted gross turnover of Rs. 1,43,00,000, exempted turnover of Rs. 1,30,30,000 and taxable turnover of Rs. 12,70,000. The taxable turnover consisted of the sales of cotton seeds in respect of inter-State transactions. The exempted turnover consisted of the sales of cotton kapas and cotton seeds under own account on the ground that he was not the last pu .....

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..... st purchaser. The correctness of this conclusion has been assailed in this revision petition. Entry 6 in the Fourth Schedule to the "Act" reads: ------------------------------------------------------------------------------- "Cotton, that is to say, all kinds of Purchase by the last Three cotton (indigenous or imported) in its dealer in the State per cent." unmanufactured state, whether ginned, liable to tax under baled, pressed, or otherwise, but not this Act. including cotton waste. ------------------------------------------------------------------------------ The levy of 3 per cent tax is on the last dealer. If the petitioner is not the last dealer, he cannot be taxed at all. If he proves that he has sold everything that he has pur .....

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..... nd the cotton and cotton seeds sold represents the purchase of kapas lost in the ginning. In the result, we allow the revision petition, set aside the orders of the authorities below and restore the original order of assessment. (March 8, 1984) K. JAGANNATHA SHETTY, J.-While dictating the order, we had directed that the matter should go back to the assessing officer with a direction to dispose of the matter in accordance with law in the light of the observations made. But now we find that the remand is totally unnecessary having regard to the finding recorded in the order. In the result, we allow the revision petition, set aside the orders of the authorities below and restore the original order of assessment. This operative part of the or .....

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