Importer liability on returned goods upheld where resale in Uttar Pradesh attracted single-point tax on vegetable oil.

Goods returned from another State and resold in Uttar Pradesh were treated as imported goods for the purpose of the levy, because the assessee had brought them within the taxable stream after the earlier transaction had become final. Vegetable oil was taxable at a single point on manufacture or import, and there was no evidence that tax had already been paid at that point. The resale turnover therefore remained assessable in the assessee's hands, and he was correctly treated as an importer liable to tax.

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Issues: Whether the dealer was liable to tax on the turnover of goods received back from another State and resold in Uttar Pradesh on the footing that he was not an importer.

Analysis: The assessee had first purchased the goods on behalf of an ex-U.P. principal and despatched them to Jaipur, after which the transaction became final. When the goods were returned and subsequently resold in U.P., the assessee had imported the goods within the meaning relevant to the levy. Vegetable oil was taxable at a single point, namely at manufacture or import under the applicable notification, and there was no evidence that tax had already been paid at the point of manufacture or by the original seller. On those facts, the resale turnover could not escape assessment in the assessee's hands.

Conclusion: The assessee was correctly treated as an importer and the turnover was liable to tax in his hands.

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