S NARAYANA SETTY Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) This tax revision under section 23(1) of the Karnataka Sales Tax Act, 1957 (the "Act"), is directed against the order of the Tribunal in S.T.A. No. 555/79 dated December 20, 1979.

(2.) The petitioner is a registered dealer under the Act. For the assessment year 1972-73 ending on September 30, 1973, he declared that he had purchased groundnut seeds of the value of Rs. 10,76,816.94 and claimed exemption in respect of that entire turnover on the ground that his sellers, five in number, were the first purchasers in the State. In support of his contention he also produced declaration in form 32.

(3.) The assessing authority made some enquiry with the sellers who issued those declarations in form 32. It was in the enquiry revealed that groundnuts of the value of Rs. 4,45,152.00 were purchased by the assessee from the turnover relating to inter-State transaction. Accordingly the assessing authority held that the petitioner is the first purchaser to that extent liable to pay tax under section 5(4) of the Act.