COMMISSIONER OF SALES TAX Vs. BABU LAL PARMANAND

JUDGEMENT

(1.) This is the Commissioner's revision under Section 11(1) of the U.P Sales Tax Act. The respondent-assessee, a partnership firm, carried on business in foodgrains, oil-seeds and bardana at Mauranipur, Jhansi. In its assessment to tax under the Central Sales Tax Act for the assessment year 1961-62 the assessee had disclosed inter-State sales at Rs. 15,745. During the course of assessment proceedings on a scrutiny of the accounts the Sales Tax Officer found that in respect of purchases made by it as purchasing agent for ex- U.P. principals, it had used its own bardana, the value of which was Rs. 34,051.73. In the opinion of the Sales Tax Officer these sales of bardana were liable to be treated as inter-State sales. The contention of the assessee was that since it had made supplies of bardana from its own account, the same could not be treated as sales liable to tax under the Central Act. That argument was repelled and the aforesaid amount was brought to tax. In respect of certain other inter-State sales of foodgrains to the extent of Rs. 7,555, the assessee's claim for concessional rate of tax was not accepted.

(2.) The assessee filed an appeal and disputed the levy of tax on the value of bardana, that is, Rs. 34,051.73, and denial of concessional rate on sales of Rs. 7,555. The appellate authority, by its order dated 6th August, 1965, agreed with the assessing authority with regard to the taxability of bardana but as -regards the assessee's claim of concessional rate of tax in respect of sales amounting to Rs. 7,555, held that the Sales Tax Officer should have allowed the assessee an opportunity to show that the purchasing dealers to whom those sales had been made were registered dealers on the date when the purchases were made by them and for that purpose remanded the case with a direction to the Sales Tax Officer to give an opportunity to the assessee to establish that the purchasers were registered dealers on the date when these sales were made to them.

(3.) After remand, when the case was taken up by the Sales Tax Officer, again a contention was urged on behalf of the assessee that the alleged sales of bardana could not be treated as inter-State sales. The Sales Tax Officer repelled this contention on the ground that the appellate order in this behalf had become final. The assessee's claim in regard to the sales of Rs. 7,555 was accepted.