COMMISSIONER OF SALES TAX Vs. BANSAL BROTHERS

JUDGEMENT

(1.) THIS is a reference under Section 44 of the Madhya Pradesh General Sales Tax Act, 1958, made by the Sales Tax Appellate Tribunal, referring for our answer the following question of law :

(2.) THE relevant period in the instant case is from 28th June, 1969, to 31st March, 1970. The assessee, Bansal Brothers, carries on the business of sale of iron scrap and bricks. The assessee purchased iron scrap for Rs. 28,073 from a registered dealer after payment of tax to him as part of the sale price without furnishing a declaration in the prescribed form. The assessee sold the same goods for Rs. 30,313,34 to consumers. The question before us is whether these sales made by the assessee were liable to sales tax. The assessee's case is that under Section 15 of the Central Sales Tax Act, iron scrap being declared goods, the tax payable under the State Act could not be levied at more than one stage.

(3.) THE argument of the learned counsel for the assessee is that as the registered dealer from whom the assessee purchased the goods without furnishing any declaration in the prescribed form was liable to pay the tax, it is not liable to pay the tax in selling the goods to the consumers. "taxable turnover" is defined in Section 2 (r) of the State Act. In determining the taxable turnover as defined in Section 2 (r), certain deductions are permissible. One of the deductions is :