https://www.taxtmi.com/caselaws?id=149958 Section 7-A of the Madras General Sales Tax Act, 1959 was held to operate only where the purchaser is a dealer, the purchase is in the course of business, the goods are otherwise taxable, and no tax is payable under sections 3, 4 or 5; those conditions are cumulative. Mere non-verifiability of the seller's earlier transactions is not a statutory test and cannot shift purchase-tax liability to the buyer. On that reasoning, purchase tax could not be levied on butter used in manufacturing ghee or on ghee involved in consignment sales where the statutory preconditions were absent, and the impugned purchase-tax demands were set aside. en-us Fri, 23 Apr 1971 00:00:00 +0530 Mon, 06 May 2013 17:40:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=149958 Section 7-A of the Madras General Sales Tax Act, 1959 was held to operate only where the purchaser is a dealer, the purchase is in the course of business, the goods are otherwise taxable, and no tax is payable under sections 3, 4 or 5; those conditions are cumulative. Mere non-verifiability of the seller's earlier transactions is not a statutory test and cannot shift purchase-tax liability to the buyer. On that reasoning, purchase tax could not be levied on butter used in manufacturing ghee or on ghee involved in consignment sales where the statutory preconditions were absent, and the impugned purchase-tax demands were set aside. Case-Laws VAT and Sales Tax Fri, 23 Apr 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=149958