SATYANARAYANA OIL TRADING COMPANY Vs. SALES TAX OFFICER

JUDGEMENT

(1.) SRI M. Anandam, Chartered Accountant, on behalf M/s. Satyanarayana Oil Trading Company, Gulbarga, appellant, and the Sales Tax Officer, Gulbarga, on behalf of the Sales Tax Department, appeared before us. Heard their arguments.

(2.) M /s. Satyanarayana Oil Trading Co., Gulbarga, has filed this appeal against the order of the learned Deputy Commissioner, Appellate, on the following grounds, namely that:

(3.) REGARDING items Nos. 1 and 2 of the grounds of appeal the learned authorised representative of the appellant vehemently argued that under Section 5(1) of the Hyderabad General Sales Tax Act, 1950, tax can be levied only on sales but not on purchases. He has contrasted the provisions of charging sections under this Act with those of the Madras General Sales Tax Act, 1939, and contended that Section 5(1} is an addition in the Hyderabad Act and that it restricts the right of the State to levy tax only when a dealer sells the very goods that he had previously purchased. This reading of the provisions of the Act is, in our opinion, not correct.