KASHIRAM RAMGOPAL Vs. COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) THE Sales Tax Tribunal (Board of Revenue) has made this reference under Section 44 (1) of the Madhya Pradesh General Sales Tax Act, 1958, (here in after referred to as the Act) at the instance of the assessee. The question referred to us for decision is -

(2.) THE assessee firm is a registered dealer having its head office at Seoni and a branch office at Calcutta. The assessee deals in various articles including jute. During the assessment period from 21st October 1960 to 8th November 1961, the assessee purchased hemp worth Rs. 11,42,629.10 from agriculturists and unregistered dealers. No sales tax was payable under section 6 of the Act on these sales by the agriculturists and unregistered dealers. The hemp purchased by the assessee was not resold in the State of Madhya Pradesh, but was sent to Calcutta. The Sales Tax Officer, Balaghat, held that the assessee was liable to pay purchase -tax under section 7 of the Act. In appeal before the Appellate Assistant Commissioner of Sales Tax, Jabalpur, the assessee contended that purchase -tax was not attracted as the despatch of hemp to Calcutta was in the course of inter -State trade or commerce. The appellate authority negatived this contention. In second appeal before the Tribunal, the ground about inter -State trade was giver up; but a new ground was pressed, namely, that the purchase -tax was not attracted as the purchases were made in the course of export of hemp outside the territory of India and that the 'purchases were exempt from purchase -tax under section 50 (1) (iii) of the Act.

(3.) IT is not disputed before us that if the transactions are not covered by section 50 (1) (iii), purchase -tax under section 7 will be attracted. That the despatch of hemp to the assessee's branch at Calcutta did not involve an inter -State transaction is apparent and the point was properly not pressed.