JHUMAKLAL SAO Vs. SALES TAX OFFICER

JUDGEMENT

(1.) THE petitioner who is a registered dealer under the M. P. General Sales Tax Act, 1958 (hereinafter referred to as "the Act"), carries on business of minor forest produce like shikakai and baibidang. He entered into a contract with the forest department, the terms whereof are to be found in annexure P-1 to this writ petition. Under the contract, the Conservator of Forests, Bastar Circle, Jagdalpur, M. P. , sanctioned sale of shikakai and baibidang which constitute minor forest produce. The sale price for the period during which the petitioner was entitled to collect the aforesaid minor forest produce was fixed at Rs. 2,500 for shikakai and Rs. 1,300 for baibidang as is apparent from annexure E-2 to the writ petition.

(2.) IN pursuance of the contract, the petitioner collected shikakai and baibidang and ultimately sold them in the market. The Sales Tax Officer was of the view that the turnover representing the sale proceeds of shikakai and baibidang by the petitioner in the market, was liable to be taxed under the Act. The case of the petitioner, on the other hand, was that he had already paid the sales tax to the Divisional Forest Officer, respondent No. 2, for being paid to the Sales Tax Officer on the sale price of shikakai and baibidang mentioned above and consequently these commodities were in the nature of tax-paid goods in the hands of the petitioner as contemplated by Section 2 (r) (ii) of the Act. This plea, however, did not find favour with the Sales Tax Officer and by order dated 21st December, 1982, copy whereof has been filed as annexure D, he assessed the petitioner to sales tax on the turnover representing the sale proceeds of shikakai and baibidang referred to above. It is this order which is sought to be quashed in the present writ petition.

(3.) HAVING heard learned counsel for the parties, we are of the opinion that there is substance in the submission made by learned counsel for the petitioner that on the facts of the instant case, keeping in view the nature of the contract, shikakai and baibidang constituted tax-paid goods in the hands of, the petitioner and he was not liable to pay sales tax on the turnover representing the sale proceeds of shikakai and baibidang, which came in his hands, consequent upon their sale to various customers by him, annexure E-1 is a copy of the sale conditions. Clause 10 (a) which is one of the conditions, contemplates that in addition to an amount payable under Section 9 above, sales tax payable by the forest department in accordance with the provisions of the Act and the Central Sales Tax Act, 1956, as the case may be, shall be recoverable from the successful bidder along with the periodical instalments of the aforementioned amounts on days mentioned in the deed of agreement.