MOHANLAL HARGOVINDAS Vs. STATE OF MADHYA PRADESH

JUDGEMENT

(1.) This appeal is brought, by certificate from the judgment of the High Court of Madhya Pradesh dated February 19, 1962 in Miscellaneous Petition No. 395 of l958.

(2.) The appellant is a firm carrying on the business of manufacturing and selling bidis. During the period April 1, 1951 to September 6, 1955, the appellant was registered as a "dealer" under the Central Provinces and Berar Sales-tax Act, 1947 (C. P. and Berar Act XXI of 1947) (hereinafter called the 'Act'). For the purposes of manufacture of bidis, the appellant imported from the State of Bombay large quantities of tobacco. During the period from November 7, 1953 to October 26, 1954, the appellant imported from that State tobacco worth Rs. 84,29,580/15/- and during the period from October 27, 1954 to November 14, 1955 the appellant imported tobacco worth Rs. 1,38,27,630/12/6. In the usual course the tobacco, after being imported into the State of Madhya Pradesh, was rolled into bidis which were largely exported to other States for sale and consumption in those States. In respect of the imports of tobacco the Sales Tax authorities required the appellant to file returns in Part B of Form IV clause 2 of which stated as follows:

(3.) By the Madhya Pradesh Sales Tax (Amendment) Act 1953 (M. P. Act XX of 1953) certain amendments were made in the Act. The material provisions of the latter Act as amended by the former Act, were as follows: