Last-point sales tax on tea remains payable despite seller's concession scheme benefit

Tea was taxable at the last point of sale under the Assam General Sales Tax Act, 1993, so the first sale from the manufacturer to the trader did not attract the exemption claimed by the purchaser. The seller's benefit under the Assam Industries (Sales Tax Concessions) Scheme, 1995 had no effect on the petitioner's own liability under section 3 of the Act. The exemption claim was therefore untenable, and the tax liability was correctly fastened on the petitioner. The writ petition failed on merits and the assessment orders were upheld.

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Issues: Whether the petitioner could claim exemption from sales tax on the ground that the seller from whom it purchased tea was enjoying benefits under the Assam Industries (Sales Tax Concessions) Scheme, 1995.

Analysis: Tea was liable to tax at the last point of sale under the Assam General Sales Tax Act, 1993. The transaction in question was the first point of sale from the manufacturer to the trader, and the statutory liability to pay tax arose only at the last point of sale. The concession available to the previous purchaser under the scheme had no bearing on the tax liability arising under section 3 of the Act. The cited decision did not advance the petitioners' case.

Conclusion: The claim for exemption was untenable and the tax liability was correctly fastened on the petitioner.

Final Conclusion: The writ petition failed on merits and the assessment orders were upheld.

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