NABI OIL MILLS Vs. COMMERCIAL TAX OFFICER CHITTOOR

JUDGEMENT

(1.) THE petitioner was assessed to tax on the turnover of the groundnut during the assessment year 1968-69 by the Commercial Tax Officer under his assessment order dated 28th October, 1969. Under entry 6 of the Third Schedule to the A. P. General Sales Tax Act (6 of 1957), "groundnut" is exigible to tax as under :

(2.) THE tax is three paise in a rupee. It is the case of the petitioner that he was not only a "miller" but also a "dealer" in groundnut and, therefore, such portion of the turnover of the groundnut which was sold by him to others was not exigible to tax. The Commercial Tax Officer, however, by his assessment order dated 28th October, 1969, assessed the entire turnover of groundnut representing the purchase of the groundnut by the petitioner to tax.

(3.) THE matter then came up before the Commercial Tax Officer, who by his order dated 16th September, 1972, held that "in response to a notice issued inviting objections if any against the proposed assessment, the dealers in their letter dated 16th September, 1972, objected to the levy of tax on a turnover of Rs. 5,05,292. 23 on the ground that they need not pay tax on this turnover as they are not the last buyers in this regard and the purchasers have issued certificates to the effect that they will pay tax on this and also requested to give relief as per the directions of the appellate orders". The Commercial Tax Officer then proceeded to hold further that "it may be a fact that they need not pay tax on this turnover on the date when the transactions took place. But, according to the latest several decisions, as manufacturers of groundnut oil, they are liable to pay tax as first purchasers. Hence, the objections raised are overruled and the assessment proposed is confirmed". In that view of the matter he confirmed the proposed assessment.