REP licence taxability turns on first seller identity; taxation cannot be shifted to the second purchaser.

Section 7A(1)(b) of the Tamil Nadu General Sales Tax Act, 1959 was considered in relation to purchase of an REP licence, but the dispute turned on the factual question of who was the first seller. The first appellate authority found that the assessee had established the source of the licence and that it was sold by the named dealer, and the Tribunal affirmed that concurrent finding. On those facts, only the first seller was liable to tax and the point of taxation could not be shifted to the second purchaser. The challenge by the Revenue failed, and no question of law was found to arise.

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Issues: Whether Section 7A(1)(b) of the Tamil Nadu General Sales Tax Act, 1959 was attracted to the assessee's purchase of REP licence and whether the point of taxation could be shifted from the first seller to the assessee.

Analysis: The assessment controversy turned on the factual finding as to who was the first seller of the REP licence. The first appellate authority found that the assessee had established the source of the licence and that the licence had been sold by the named dealer. The Tribunal affirmed that finding and held that, on the facts, only the first seller could be taxed and the point of taxation could not be shifted to the second purchaser. The legal position on taxability of REP licence was already settled, but the present dispute depended on the factual determination of the selling chain, which had been concurrently decided against the Revenue.

Conclusion: Section 7A(1)(b) was held not to be attracted on the facts, and no question of law arose for consideration. The Revenue's challenge failed.

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