VARKEY Vs. SALES TAX OFFICER

JUDGEMENT

(1.) The petitioner is the owner of a Tea Estate in this State who having no factory of his own sells his tea leaves as soon as they are plucked. He has been assessed to sales tax in respect of the green leaves sold by him and the legality of the demand for the period 1.10.1124 to 32.12.1124 is the subject of controversy in this petition.

(2.) Against the order of assessment made by the Rural Sales Tax Officer, Peermade, the petitioner filed an appeal before the Assistant Commissioner of Agricultural Income Tax and Sales Tax, Kottayam, appeal No. 93 of 1951-52, and the Assistant Commissioner by his order dated 1.10.1951 accepted the petitioners contention and held that the sales cannot be considered as liable to Sales Tax. The Deputy Commissioner of Agricultural Income Tax and Sales Tax, Trivandrum, however, took up the matter in revision, set aside the decision of the Assistant Commissioner, and confirmed the order of assessment made by the Rural Sales Tax Officer, Peermade. The order of the Deputy Commissioner, D. Dis. 3493/52, dated 18.11.1952, reads as follows:-

(3.) The Sales Tax Act under which the assessment was made is the Travancore General Sales Tax Act, XVIII of 1124. S.3 of that Act provides that subject to the provisions of the Act:-