COMMISSIONER SALES TAX Vs. BAIJNATH JAGAN NATH

JUDGEMENT

(1.) THIS is a reference under section 11(3) of the U.P. Sales Tax Act, at the instance of the Commissioner, Sales Tax, Uttar Pradesh, Lucknow. The Additional Judge (Revisions) Sales Tax, Agra, who has made this reference, has submitted the following two questions of law for the opinion of this court :

(2.) THE assessee is a dealer in various commodities, including dal. During the assessment year 1964-65, the assessee purchased dal from dal mills worth Rs. 95,425.65. The Sales Tax Officer levied purchase tax on these purchases under section 3-D(1) of the U.P. Sales Tax Act. Before the Sales Tax Officer the assessee contended that he was not the first purchaser and, as such, no purchase tax could be levied upon him, because, purchase tax is levied only upon the first purchase. His argument was that the first purchaser would be the mills, who purchased the whole dal from the market, and that the split dal, that the assessee purchased from the mills, was not commercially a different commodity from the whole dal. This contention of the assessee was not accepted by the Sales Tax Officer, but has been upheld by the Judge (Revisions) Sales Tax. The Commissioner, Sales Tax, feels aggrieved and has brought this reference before us.

(3.) IT has been provided that this explanation shall be deemed always to have been inserted in the Act so that the amendment has been given retrospective effect and, as such, shall apply to the present case also. According to the amendment, the split dal and whole dal are two different commodities, and, therefore, even if the purchase tax had already been imposed on the whole dal, the first purchase of split dal can also be subjected to tax. In the circumstances we answer both the questions in the affirmative, in favour of the Commissioner, Sales Tax, and against the assessee. As, however, no one has appeared, we make no order as to costs. The fee of the learned counsel for the department is assessed at Rs. 100. Reference answered in the affirmative.