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of <h1>Court upholds sales tax assessment on local and out-of-state sales, dismissing lack of material argument. Assessee ordered to pay costs.</h1> The court upheld the assessment of sales tax on local sales and linseed despatched outside Bihar, ruling in favor of the State of Bihar. The petitioner ... - Issues Involved:1. Whether there is any material to support the assessment of sales tax upon the petitioner firm on a turnover of goods worth two lacs for local sale.2. Whether the assessment of sales tax upon linseed to the value of Rs. 1,24,998 despatched outside the State of Bihar is legally valid.3. Whether there is any material to support the contention of the assessee firm that the quantity of linseed to the extent of Rs. 1,24,998 has been sold outside the State of Bihar.Detailed Analysis:Issue 1: Material to Support Assessment of Sales Tax on Local SalesThe petitioner firm, Debulal Gudarmal, did not furnish quarterly returns or produce account books for the period from 1st April 1949 to 31st March 1950. Consequently, the Superintendent of Sales Tax made an assessment to the best of his judgment, determining the gross turnover to be Rs. 11,51,890 and the taxable turnover for local sales to be Rs. 1,80,000. The petitioner argued there was no material to support the assessment for local sales, claiming all business was conducted outside Bihar. However, the court found sufficient material to support the assessment, including a report by the Inspector dated 10th February 1950 and a surprise visit by the Superintendent on 11th August 1950. The Inspector's report noted the dealer's significant local business activities and estimated a monthly gross turnover of Rs. 30,000. The court concluded that there was material to support the assessment of sales tax on a turnover of goods worth two lacs for local sales and answered this issue in favor of the State of Bihar.Issue 2: Legal Validity of Sales Tax Assessment on Linseed Despatched Outside BiharThe petitioner argued that the sale of linseed worth Rs. 1,24,998 occurred outside Bihar and should not be taxed by the state. The court examined the despatch records and noted that most consignments were made to 'self,' implying a reservation of the right of disposal within the meaning of Section 25 of the Sale of Goods Act. There was no material to show how the railway receipts were endorsed. The court held that in the absence of such material, it could not be accepted that the title to the goods passed outside Bihar. The court also referenced Section 2(g) of the Bihar Sales Tax Act, which extends the definition of 'sale' to include goods in Bihar at the time of the contract, regardless of the delivery location. Therefore, the assessment of sales tax on linseed despatched outside Bihar was deemed legally valid, and this issue was answered in favor of the State of Bihar.Issue 3: Material to Support Contention of Sales Outside BiharThe petitioner contended that the linseed worth Rs. 1,24,998 was sold outside Bihar. The court found no material to support this contention, noting that the railway receipts were not made out in the purchaser's name and there was no evidence of how they were endorsed. The court concluded that there was no material to support the claim that the linseed was sold outside Bihar. This issue was also answered in favor of the State of Bihar.Conclusion:All three questions referred by the Board of Revenue were answered against the assessee and in favor of the State of Bihar. The court upheld the assessment of sales tax on both local sales and linseed despatched outside Bihar. The assessee was ordered to pay the cost of the reference, with a hearing fee of Rs. 250.
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