Court dismisses tax case, affirms subsequent sale not taxable if not first in State; burden on revenue to tax initial sale.

The court dismissed the tax case, upholding the Sales Tax Appellate Tribunal's decision that the subsequent sale of a lorry by the assessee was not taxable as it was not the first sale in the State. The court held that it is the revenue's responsibility to tax the first sale, and if the assessee's sale is not the first, it cannot be taxed. The court emphasized that the burden of proof lies on the authorities to levy tax on the initial sale, not on the subsequent seller to demonstrate that the first sale has been taxed.

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Issues involved: Assessment of turnover on the sale of a lorry u/s 15 of the General Sales Tax Act.

Summary:
The assessee sold a lorry during the assessment year 1978-79, which was assessed at Rs. 60,000 by the assessing officer as the first sale in the State. The Appellate Assistant Commissioner upheld this assessment. On appeal to the Sales Tax Appellate Tribunal, it was argued that the lorry had already been taxed in a previous sale, therefore, the subsequent sale by the assessee should not be taxed. The Tribunal found that the assessee's sale was not the first sale in the State, and therefore, exempt from taxation as subsequent sales of motor vehicles are only taxable on the first sale in the State.

The revenue contended that the assessee must prove that the first sale had been taxed to claim exemption. However, the court disagreed, stating that if the assessee's sale is not the first sale, it cannot be taxed, and it is the revenue's responsibility to tax the first sale. The court cited previous decisions to support this view, emphasizing that the onus is on the authorities to levy tax on the first sale, not on the subsequent seller to prove that the first sale has been taxed. Therefore, the court dismissed the tax case, upholding the Tribunal's decision.

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