Single-point levy on groundnuts applies at purchase by the first miller, not only the miller who crushes them into oil.

Item 6 of Schedule III to the Andhra Pradesh General Sales Tax Act was construed as imposing a single-point levy on groundnuts purchased by a miller. Because groundnuts were declared goods under section 14 of the Central Sales Tax Act, 1956, the levy had to operate within article 286(3) of the Constitution and section 15 of that Act. Reading the entry as a whole, the phrase "when purchased by a miller" was held to refer to the first miller purchasing the goods in the State, regardless of whether that miller later crushed them into oil or resold them. The competing view, limiting tax to the final crushing miller, was rejected.

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Issues: Whether, under item 6 of Schedule III of the Andhra Pradesh General Sales Tax Act, the point of levy in respect of groundnuts purchased by a miller is the first purchase by any miller in the State or only the purchase by the miller who ultimately crushes the groundnuts into oil.

Analysis: Groundnuts were declared goods under section 14 of the Central Sales Tax Act, 1956, and the State levy had to operate within the restrictions of article 286(3) of the Constitution of India and section 15 of the Central Sales Tax Act, 1956. Item 6 of Schedule III fixed the tax at the point of purchase by a miller, while the second limb dealt separately with purchases by the last dealer. Reading the entry as a whole, the expression "when purchased by a miller" was held to refer to the first miller who purchases the goods in the State, without waiting to see whether he himself crushes the groundnuts or resells them. The construction suggested by the assessees, that only the miller who finally converts the groundnuts into oil is taxable, was rejected as unsupported by the language of the entry and unnecessary to avoid multiple taxation, since the tax was a single-point levy.

Conclusion: The point of levy is the purchase by the first miller in the State, and not the purchase by the miller who ultimately crushes the groundnuts into oil.

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