T MARIASINGHA CHETTIAR Vs. STATE OF MADRAS

JUDGEMENT

(1.) THE petitioner is a dealer in various kinds of oil at Asaripallam and Vadaseri within the district of Kanyakumari. Before the reorganisation of States in 1956 they were places within the Travancore-Cochin State. In respect of his turnover for the year 1956-57, he claimed that the sum of Rs. 91, 755-11-0 should be excluded from the taxable turnover. This sum related to sales of laurel oil effected after 1st November, 1956, to dealers at Alleppey and other places situated in the Kerala State. THE assessment in respect of that year was governed by the Travancore-Cochin General Sales Tax Act. Under that Act the assessment was to be made only on the last purchaser in the State. THE contention of the petitioner was that he was not the last purchaser and that the purchasers at Alleppey and other places in the Kerala State should alone he treated as the last purchasers for the purposes of levy under the Travancore-Cochin Act. This contention was overruled by the Deputy Commercial Tax Officer, Nagercoil, and also by the Commercial Tax Officer, Tirunelveli. THE petitioner's further appeal to the Sales tax Appellate Tribunal, Madras, raising the same question was also not successful. Hence this revision petition has been preferred by the assessee.

(2.) THE short point that arises for decision in this case is whether the petitioner is liable to be assessed to sales tax under the Travancore-Cochin Act on the footing that he is the last purchaser in "the state". If the words "State" is to be understood as the Madras State undoubtedly the petitioner is the last purchaser. If however the word "State" has to be read and understood as the former Travancore-Cochin State, part of which has become merged with the Madras State and part of which has gone into the making of the Kerala State, then the last purchaser would be the Alleppey purchasers or other purchasers within the erstwhile Travancore-Cochin State. THEre is no dispute that it is the Travancore-Cochin General Sales Tax Act Alone that applies, and there is also no dispute that under that Act, it is only the last purchaser within the State who can be assessed in respect of sale of oils. In order to ascertain the true position whether the petitioner can be assessed to tax as the last purchaser we have to refer to the provisions of the States Reorganisation Act.This Act received the assent of the President on 31st August, 1956. THE "appointed day", that is the day on which the newly constituted States came into existence, is the first day of November, 1956. "Existing State" is defined as a State specified in the First Schedule to the Constitution at the commencement of this Act.

(3.) WE may also refer to section 12 of the Act which reads :- "Amendment of the First Schedule to the Constitution. - As from the appointed day, in the First Schedule to the Constitution, for Part A, Part B and Part C, the following Parts shall be substituted, namely :-'PART A Name Territories