STATE OF KARNATAKA Vs. PEIRCE LESLIE INDIA LTD

JUDGEMENT

(1.) This revision petition is by the State of Karnataka ("Revenue") and is directed against the order dated 12th June, 1978 of the Karnataka Appellate Tribunal, Bangalore ("Tribunal") in Appeal STA No. 153 of 1976.

(2.) M/s. Peirce Leslie India Ltd., a public limited company, incorporated under the Companies Act, which is the respondent/assessee is, inter alia, engaged in the business of purchase and sale of cashew-nuts, cashew and cashew kernels. The assessee is a registered dealer under the Karnataka Sales Tax Act, 1957 ("the Act") and the Central Sales Tax Act, 1956.

(3.) For the assessment period from 1st October, 1970 to 30th September, 1971, the assessee in its return filed under the Act before the Assistant Commissioner of Commercial Taxes, Mangalore ("ACCT") disclosed a purchase turnover of Rs. 35,47,962.75 of cashew-nuts and a sales turnover of Rs. 13,56,548.61 on cashew kernels extracted or pressed from out of the aforesaid cashew-nuts. On the said sales turnover of cashew kernels, the assessee claimed total exemption from payment of sales tax under the Act on the ground that it had paid purchase tax under section 6 of the Act. On 19th September, 1975, the ACCT completed the assessment and rejected the said exemption and brought the sales turnover of Rs. 13,56,548.61 to tax at the rate of 2 per cent under the Act.