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of <h1>Liability for Sales Tax on Consignment Sales of Declared Goods Interpreted by Mysore High Court</h1> The Mysore High Court, in a judgment by Justice Hegde, addressed the liability of the petitioner for sales tax on purchases of 'declared goods' sold to an ... - Issues:1. Liability of the petitioner to be assessed to sales tax for the assessment year 1958-59 in respect of purchases of 'declared goods' sold to a dealer outside the State on a consignment basis.2. Interpretation of the term 'dealer not registered under this Act' in clause (ii) of explanation I to section 5(4) of the Mysore Sales Tax Act, 1957.3. Determination of the definition of 'dealer' in the context of the Act and its relation to the Central Sales Tax Act.Analysis:The judgment by the Mysore High Court, delivered by Justice Hegde, addresses the liability of the petitioner for sales tax on purchases of 'declared goods' sold to an out-of-state dealer on consignment. The key issue revolves around whether the petitioner can be considered the last purchaser of the goods, as defined in clause (ii) of explanation I to section 5(4) of the Mysore Sales Tax Act. The Court examines the relevant provisions of the Act as of 1959 and the transactions preceding December 31, 1958. Section 5(4) of the Act, prior to 1959, outlines the taxation of declared goods and exempts the last purchase inside the State if intended for inter-State trade. The interpretation hinges on whether the term 'dealer not registered under this Act' should align with the Act's definition of a dealer or the Central Sales Tax Act's definition.The Court delves into the definitions of 'dealer' under the Mysore Sales Tax Act and the Central Sales Tax Act to ascertain the appropriate interpretation in the given context. The Act defines a dealer as a person engaged in buying, selling, or distributing goods in the State of Mysore, while the Central Sales Tax Act defines a dealer as a person selling goods. The Court notes that the goods were sold to individuals not meeting the Act's definition of a dealer, leading to a debate on the contextual interpretation of the term. The historical background of the legislation, particularly the enactment of the Central Sales Tax Act in 1956, sheds light on the intended scope and application of section 5(4) of the Act.The judgment emphasizes that the introduction of section 5(4) in the Act aimed to align with the provisions of the Central Sales Tax Act, albeit with modifications. The Court concludes that the term 'dealer not registered under this Act' in the Act refers to the definition of a dealer in the Central Sales Tax Act. While acknowledging the State's argument regarding taxing last purchases of declared goods, the Court refrains from a definitive ruling due to incomplete arguments. Ultimately, the Court upholds the Tribunal's decision, holding the petitioner liable for tax under section 5(4) of the Act, resulting in the dismissal of the petition with costs.
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