KARIM Vs. STATE KERALA

JUDGEMENT

(1.) "Cashewnut including its kernel" is item 37 of Schedule. 1 to the General Sales Tax Act, 1125. The rate of tax specified in column (3) of the said schedule is 4 np. for every rupee in the turnover relating to such goods.

(2.) BY virtue of a notification under S. 5 (vii) of the Act dated the 1st April 1958 "cashewnut including its kernel" item 44 of the notification is taxable only at a single point, the last purchase in the State by a dealer who is not exempt from taxation under S. 3 (3) of the Act. According to S. 5 (vii), where the taxable point specified is a point of purchase, the buyer-and not the seller-is the person liable for the tax.

(3.) THE Statement of Objects and Reasons appended to L. A. Bill No. 18 of 1958, which became the General Sales Tax (Second Amendment) Act, 1958 in so far as it is relevant to this case, said: "cashew and its Kernel are liable to tax at 4 np. in the rupee at the last point of purchase within the State. Doubts have been raised as to whether the purchase of Cashew Kernel produced out of raw nuts on which tax has already been paid is liable to be taxed again. It is not the intention to tax the cashew kernel again in such cases. It is proposed to make this position clear by amending item 37 of the Schedule. "