STUDIO SEN AND SEN Vs. STATE OF TRIPURA

JUDGEMENT

(1.) AN important question of law has arisen for determination in this petition as to whether a dealer who purchased photographic materials and used the same in taking photographs and supplying prints thereof to his clients, which did not amount to sale, can be assessed to sales tax under the Tripura Sales Tax Act, 1976, on any supposed sale of the materials so used on the ground that the purchases were made at a concessional rate of tax on the strength of "c" forms issued under the Central Sales Tax Act.

(2.) THE petitioner is proprietor of a photo studio known as M/s. Studio Sen and Sen stated at Agartala. He carries on the business of buying and selling photographic goods and also buying photographic materials for use by him in taking photographs and supplying prints thereof to the customers or making enlargement of the photographs or making prints out of negatives supplied by his clients. A consolidated amount depending upon the work involved and the number of prints is charged from the clients as consideration.

(3.) THE Superintendent, Taxes, however, did not follow the aforesaid of the Supreme Court. He observed that the petitioner could have the benefit of purchasing any material at a concessional rate if the goods or anything processed out of it was not saleable and on that basis held that there was no justification for leaving an amount of Rs. 1,98,460. 44 (representing the value of purchase of materials used in preparation of photographs, etc.) as non-taxation and accordingly, added the estimated sale value thereof in the taxable turnover of the petitioner. The additions made in 5 assessment for the period ending 31st March, 1977, 31st March, 1978, 31st March 1979, 31st March, 1980 and 31st March, 1981 were Rs. 12,000 Rs. 10,000 Rs. 50,000 Rs. 64,000 and Rs. 70,000 respectively.