ANDAL AND COMPANY Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) The petitioner purchased gum from Sri Venkateswara & Co., Osmangunj, Hyderabad. Venkateswara & Co. is a registered dealer. The gum is taxable at sale point. Indeed it is taxable at every point of sale. Venkateswara & Co. did not however collect the tax while effecting the said sale on the ground that it was acting as the selling agent of the agriculturist producers and inasmuch as the principals are exempted, their agent is equally exempted. After purchasing the gum the petitioner despatched it to other States for sale through agents. Originally, assessment was made exempting the turnover relating to gum in a sum of Rs. 3,54,502 on the ground that no sale has taken place within the State. Later the assessment was reopened and the transaction subjected to tax under section 6-A.

(2.) The Tribunal has held that by virtue of clause (i) of section 6-A read with clause (c) of the said section the tax is leviable. Section 6-A reads as follows :

(3.) The first contention of Mr. P. Venkatarami Reddy, learned counsel for the petitioner, is that clause (i) cannot be said to be attracted in this case. His submission is that the words