Last purchase tax point cannot shift backwards merely because the exporter's purchase was exempt under sales tax law.

Where groundnut was taxable at the last purchase point, the exporter who bought the goods within the State for export remained the actual last purchaser, even though that purchase was exempt under section 5(3) of the Central Sales Tax Act and section 38 of the Andhra Pradesh General Sales Tax Act. The exemption did not allow the revenue to shift the tax incidence backwards to the dealer who sold to the exporter, and the amendment relied on was inapplicable to the assessment year. The tax demand on the earlier dealer was therefore unsustainable, and the revisions failed.

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Issues: Whether, in respect of groundnut taxable at the last purchase point, the dealer who sold the goods to an exporter could be treated as the last purchaser merely because the exporter's purchase was exempt under the sales tax law.

Analysis: Groundnut was taxable at the last purchase point under the State sales tax law. The exporter, having purchased the goods within the State for export, was the actual last purchaser in the State. The mere fact that that purchase was exempt under section 5(3) of the Central Sales Tax Act and section 38 of the Andhra Pradesh General Sales Tax Act did not authorise the department to shift the incidence of tax to the dealer who had sold the goods to the exporter. The amendment relied upon was also inapplicable to the assessment year in question.

Conclusion: The dealer could not be treated as the last purchaser, and the tax demand on that basis was unsustainable.

Final Conclusion: The revisions failed and the assessments were not disturbed.

Ratio Decidendi: Where tax is levied at the last purchase point, an exempt purchase by the actual last purchaser does not permit the revenue to shift the taxable point backwards to an earlier purchaser.

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