KESARBAI Vs. COMMISSIONER OF COMMERCIAL TAXES BANGALORE

JUDGEMENT

(1.) For the period 9th November, 1961 to 28th October, 1962, the petitioner was assessed to sales tax although her total turnover was much below Rs. 7,500. In the ordinary course, by virtue of the provisions of sub-section (5) of section 5 of the Mysore Sales Tax Act, she would not have been liable to tax at all. But on the admitted facts that she was a registered dealer under the Central Sales Tax Act and had purchased goods on declarations under section 8(4) thereof, the assessing authority applied sub-section (2) of section 5 to the case and imposed tax. On appeal, the Appellate Assistant Commissioner took a different view and set aside the assessment. The Commissioner of Commercial Taxes, in exercise of his suo motu powers of revision, has set aside the order of the appellate authority and restored that of the original assessing authority. This appeal is directed against the said order of the Commissioner.

(2.) The question turns exclusively on the interpretation of sub-section (2) of section 5, because it is common ground that unless the case could be brought within it, the petitioner would be entitled to exemption under sub-section (5).

(3.) Sub-section (2) as in force during the relevant period read as follows :-