C B BASAPPA Vs. STATE OF MYSORE

JUDGEMENT

(1.) This is a revision petition under section 23 of the Mysore Sales Tax Act, 1957, read with section 9(3) of the Central Sales Tax Act, 1956, which will be hereinafter referred to as the "Act". The question of law raised in this revision petition is, "whether inter-State sales to unregistered dealers fall within section 8(2) of the Act".

(2.) The petitioner is a registered dealer in this State. During the assessment year 1958-59 (from 1st July, 1958, to 30th June, 1959) the petitioner sold certain goods to some dealers in Patna and Calcutta. The goods sold by him are not declared goods. The concerned dealers in Calcutta and Patna were not registered dealers. The question for decision is whether the turnover relating to those sales are liable to be taxed under section 6 read with section 8(2) of the Act. The Sales Tax Authorities as well as the Sales Tax Appellate Tribunal have come to the conclusion that the turnover in question is liable to be taxed under section 6 in accordance with the rates prescribed in section 8(2). Aggrieved by that decision, the assessee has come up in revision to this Court.

(3.) To answer the question of law raised for decision, it is necessary to refer to the relevant provisions of the Act. The charging section in the Act is section 6. For our present purpose, only sub-section (1) of section 6 is relevant. That section reads :-