Section 5A tax point rule applies only to a genuine series of sales of the same commodity, not isolated transactions.

Section 5A of the Bengal Finance (Sales Tax) Act, 1941 operates only to select one taxable point in a series of sales by successive dealers of the same commodity, and cannot be used to impose tax where that statutory condition is absent. A notification issued under section 5A must be read consistently with that limited enabling purpose. On the facts discussed, medicines sold to registered dealers and manufacturers were not part of a continued series of sales of the same goods, as goods used as raw material lost their identity. The notification therefore did not apply, and deduction could not be denied on that basis.

---

---

Issues: Whether medicines sold by the dealer to registered dealers and manufacturers were liable to tax at the first point of sale under the notification issued under section 5A of the Bengal Finance (Sales Tax) Act, 1941, notwithstanding the claim for deduction under section 5(2)(a)(ii).

Analysis: Section 5A is an enabling provision intended to prevent multiple taxation on the same commodity by specifying one point in a series of sales by successive dealers at which tax may be levied. It applies only where there is a plurality of sales of the same commodity in Delhi; if there is only one sale, the provision does not operate. The notification dated 30th December, 1964 must be read in the light of section 5A and cannot be construed to impose tax where the commodity is not otherwise part of a series of sales by successive dealers. Goods sold by the dealer to manufacturers were used as raw material and lost their identity as such, so there was no series of sales of the same goods in the Union Territory.

Conclusion: The notification did not apply to the sales in question, and the deduction could not be denied on that basis; the answer to the referred question was in favour of the dealer.

Ratio Decidendi: Section 5A of the Bengal Finance (Sales Tax) Act, 1941 applies only where there is a plurality of sales by successive dealers of the same commodity, and a notification issued under it cannot extend tax to transactions outside that statutory condition.

---