ALEMBIC DISTRIBUTING AGENCY Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THIS revision petition raises the question whether the petitioner is entitled to exemption under section 4 of the Madras General Sales Tax Act, 1939.

(2.) THE petitioner is a distributor of certain medicinal preparations. In the year 1957-58, his return disclosed a turnover of Rs. 7,57,313-12-0 out of which exemption was claimed on Rs. 2,33,687-0-9 on the ground that excise duty was paid under the Madras Prohibition Act (Madras Act X of 1937). The Commercial Tax Officer accepted the plea of the petitioner and granted the exemption claimed. When the matter came to the notice of the Deputy Commissioner of Commercial Taxes, he cancelled the exemption suo motu after giving the petitioner an opportunity, and called upon him to pay the tax on the said amount.

(3.) BY virtue of this section, goods would not be liable to tax only if duty was levied under the Madras Abkari Act, 1886, or the Madras Prohibition Act, 1937. Therefore, before the claim for exemption could be justified, it should be established that duty was paid on the goods. We will now turn to the relevant provisions of the Madras Prohibition Act, 1937. Section 16, omitting the portions not relevant for the present enquiry, reads :