Tax on imported tyres requires positive material showing out-of-State import before levy can stand.

Tax on tyre turnover could not be sustained merely because accounts were rejected, purchases were unverifiable, or check-post verification was absent. The levy depended on a positive factual finding, supported by material, that the tyres sold were imported by the dealer from outside the State. In the absence of such a recorded finding, the authorities lacked the basis to impose the tax. The levy was therefore not upheld and the revisions succeeded.

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Issues: Whether turnover of tyres could be taxed in the dealer's hands on the basis that the tyres were imported from outside the State, in the absence of a positive finding supported by material.

Analysis: The levy depended on a factual finding that the tyres sold were imported by the dealer from outside the State. Mere rejection of accounts, absence of verifiable purchases, or the lack of check-post verification did not by itself establish the required fact. A taxing liability of this nature could not be sustained unless the authorities recorded a clear finding on the basis of positive material that the goods sold were imported goods.

Conclusion: The finding necessary to sustain the tax was not recorded on positive material and the levy could not be upheld; the revisions succeeded.

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