CHITTARMAL RAM DAYAL Vs. COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) The following question of law was referred for opinion of this Court : Whether or not the assessee was entitled to pay purchase tax on the first purchase of oil-seeds of Rs. 1,63,87,738 at the concessional rate of tax of 2 per cent being a holder of recognition certificate under Section 4-B of the Sales Tax Act ?

(2.) As the law has been amended, the reference is converted and decided as revision.

(3.) The facts giving rise to the revision are that the assessee runs an oil mill at Agra. Its premises were surveyed on 5th June, 1970, by the Sales Tax Officer (S. I. B.). The surveying officer found that the assessee maintained oil tank measurement register, commonly known as dip register (exhibit 3), and oil production register and as the figures of these two registers did not tally he submitted a report that the assessee was suppressing production of oil. The assessing authority rejected the account books of the assessee and determined the turnover to best of judgment. In appeal the order was set aside and the case was sent back for decision afresh. In revision, the accounts were accepted, but the order of remand was upheld as the -claim of the assessee that it was not the first purchaser of oil-seeds and therefore not liable to pay tax was not examined. From this the assessee is not aggrieved. But, while considering the alternative case that even if the assessee is held to be the first purchaser of oil-seed it was entitled to the concessional rate of 2 per cent as it held recognition certificate, the revising authority issued direction that as the oil produced by the assessee must be deemed to have flown from both the sources, that is, oil-seed purchased against recognition certificate and otherwise, the proportionate formula laid down by the Bombay High Court in Commissioner of Sales Tax v. Berar Oil Industries [1975] 36 STC 473 may be applied. The as,sessee is aggrieved against this direction.