KARNATAK COFFEE COMPANY Vs. COMMERCIAL TAX OFFICER DAVANAGERE

JUDGEMENT

(1.) This is an application by a firm dealing in coffee seeds and coffee powder, the turnover of whose inter-State sales of coffee powder for the period between 1st July, 1957, and 20th March, 1958, amounted to Rs. 1,22,866-38 nP. This turnover was the aggregate of the following :- <FRM>JUDGEMENT_124_TLKAR0_1962Html1.htm</FRM>

(2.) These inter-State sales were assessed to sales tax under the provisions of the Central Sales Tax Act, 1956. The Commercial Tax Officer called upon the petitioner to pay tax on the turnover of the first period at 3 per cent. The turnover relating to the second period was divided by him into two parts. On a sum of Rs. 32,511-26 nP. he called upon the petitioner to pay tax at 1 per cent. and, on the remaining sum of Rs. 42,971-70 nP. at 5 per cent.

(3.) In this writ petition, which is directed against the assessment made in this way, Mr. Venkataranga Iyengar contends that the sales of coffee powder made by the petitioner were all exempt from the payment of tax under the Central Sales Tax Act and that the assessing authority could not have called upon the petitioner to pay any tax in respect of those sales. In support of this contention, he relied upon section 8 of the Central Sales Tax Act.