ANANDILAL NARAINDAS Vs. COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) BY this application under Articles 226 and 227 of the Constitution, the petitioner-firm challenges the validity of the orders of the Assistant Sales Tax Officer, Dhar, assessing it to sales tax for the periods from 1st April, 1959, to 31st March, 1960, and from 1st April, 1960, to 31st March, 1961. The orders of the Assistant Sales Tax Officer were upheld in appeals by the Additional Appellate Assistant Commissioner of Sales Tax, and in revision by the Additional Commissioner of Sales Tax. The applicant seeks a writ of certiorari for quashing these orders of the Additional Appellate Assistant Commissioner of Sales Tax and the Additional Commissioner of Sales Tax, also.

(2.) THE petitioner-firm took two forest contracts for the extraction and collection of gum from trees growing in certain forest areas in the District of Dhar. The Assistant Sales Tax Officer included in the taxable turnover for the aforesaid two periods the amount that the petitioner had paid as consideration to the State for the two contracts. He rejected the contention of the petitioner that under the two contracts there was sale of gum by the State Government to it, and as sales tax on gum was payable at the first point, the tax, if any, was payable by the State Government inasmuch as "dealer", as defined in the Madhya Pradesh General Sales Tax Act, 1958, (hereinafter referred to as the Act), included the State Government. The applicant also relied on a notification issued by the State Government on 1st June, 1963, under Section 12 of the Act by which the State Government exempted from sales tax sales of forest produce effected by the Forest Department of the Government during the period from 1st April, 1959, to 2nd November, 1962, and contended that inasmuch as forest produce was exempted during the material period from any sales tax, no sales tax could be recovered from it. This contention was also negatived by the Assistant Sales Tax Officer.

(3.) THE Additional Commissioner of Sales Tax upheld the orders of assessment made by the Assistant Sales Tax Officer taking the view that under the forest contracts there was a sale of gum by the Forest Department to the petitioner ; that sales tax was payable on sales of gum on the point of first sale under entry 1 of Part VI of Schedule II to the Act; and that the Forest Department was not liable to pay any sales tax on sales of gum under the notification issued on 1st June, 1963, and, therefore, the petitioner was liable to pay sales tax. The Additional Commissioner of Sales Tax observed that under the definition of "taxable turnover" given in Section 2 (r) of the Act, the consideration paid by the petitioner to the Forest Department for purchasing gum could not be deducted as under that definition only the "sale price of goods on which tax is payable at the first point, and which has been subjected to tax in accordance with the provisions of the Act" can be deducted.