Last purchase tax on cotton remains payable despite fire destruction before resale under sales tax law.

Cotton purchased by the last dealer in the State remained taxable as the last purchase under section 6 of the Andhra Pradesh General Sales Tax Act, 1957, even though it was destroyed by fire before resale. The decisive factor was that the purchase had in fact become the last purchase in the State; the dealer's intention to resell was irrelevant. The supervening destruction did not alter the character of the taxable purchase, so the turnover relating to the destroyed cotton was held exigible to tax and the assessment was upheld.

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Issues: Whether cotton purchased by the dealer but destroyed by fire before resale could nevertheless be taxed as the last purchase in the State under section 6 of the Andhra Pradesh General Sales Tax Act, 1957.

Analysis: The taxable event under the relevant sales tax provision was the purchase by the last dealer who buys the goods in the State. The decisive question was not the dealer's intention to resell the goods, but whether the purchase had in fact become the last purchase within the State. Since the petitioner was the last purchaser of the cotton and the goods were destroyed while in its hands, the supervening fire did not alter the character of the taxable purchase. The fact that the dealer intended to resell the cotton, but could not do so because of destruction, was held to be irrelevant to taxability under the provision.

Conclusion: The turnover relating to the destroyed cotton was exigible to tax, and the assessment was upheld.

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