A JAINULABDEEN SAHIB Vs. STATE OF MADRAS

JUDGEMENT

(1.) THE assessee is a dealer in snuff. In the assessment for the year 1955-56, the Deputy Commercial Tax Officer accepted as exemptible a turnover of Rs. 4, 38, 068 on account of the inter-State sales and a further turnover of Rs. 1, 17, 107 as being sales of snuff at the Calcutta branches of the assessee's business. At that stage, a claim put forward by the assessee that the excise duty paid by it on the purchase value of the tobacco should be deducted, was disallowed. This disallowance was made the subject-matter of an appeal before the Commercial Tax Officer. THE result of that appeal is not of any importance, as it does not bear upon the question in this tax revision case. On 10th March, 1962, the Board of Revenue, in the exercise of its powers under section 34 of the Act of 1959, issued a notice to the assessee.

(2.) IT took the view that the exemption in respect of inter-State sales granted for the period 1st April, 1955, to 6th September, 1955, was not correct and that though the sales were inter-State in character they were yet assessable by reason of the removal of the ban under Article 286(2) by the Sales Tax Laws Validation Act, 1956, IT computed the turnover for the period 1st April, 1955, to 6th September, 1955, as Rs. 1, 16, 217 and in the notice issued to the assessee proposed to cancel the exemption granted on this part of the turnover. To this notice the assessee took objection.

(3.) ON a careful consideration of the questions, we are of opinion that these contentions are well founded. We shall take up the question of jurisdiction first. Section 34 of the Madras General Sales Tax Act, 1959, by sub-section (2), states :