Second sale treatment for electrical goods upheld where purchases came from a dealer already recognised as genuine.

Sales of electrical goods purchased from a dealer previously found to be genuine and whose sales were treated as second sales in the State were themselves subsequent sales in the assessee's hands. The court held that the assessee was not required to prove that the vendor had already suffered tax on those transactions. On that basis, the assessee's sales were treated as second sales and not first sales liable to single point tax, and the revision was dismissed.

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Issues: Whether the assessee's sales of electrical goods were first sales liable to tax or second sales not liable to single point tax.

Analysis: The goods sold by the assessee had been purchased from Honesty Electricals. That concern had already been held in earlier proceedings to be a genuine dealer and its sales to constitute second sales in the State. On that footing, purchases from Honesty Electricals could only result in subsequent sales in the hands of the assessee, and the assessee was not required to establish that the vendor had itself suffered tax in respect of those transactions.

Conclusion: The assessee's sales were second sales and not first sales liable to single point tax; the revision was dismissed.

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