TaxTMI 
TaxTMI 
1976 (11) TMI 83
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....e district of Sambalpur. He filed return for the years 1971-72 and 1972-73 and assessments were completed. But later on the assessing officer found that during these two years, the appellant has treated vegetable seeds as tax-free articles, but they should be taxed for which he started proceeding u/s 12 (8) and accepted the sale figures of vegetable seeds as shown in the return to be his sales turnover. He found that the appellant has sold vegetable seeds worth of Rs. 13,744-42 and Rs. 8451-02. He accepted these sales figures and imposed tax at the rate of 5% and also levied penalty Rs. 100/- and Rs. 50 respectively. So far as the assessment year 1974-75 is concerned the appellant filed return showing this G.T.O. at Rs.1,20,082-46. But the ....
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....ticulars before the first appellate court. But it is strange that the first appellate court did not breath a word about it. In view of that the quantification of sale of vegetable seeds in the two years is not correct. He thirdly urged that the appellant has maintained both purchase and sale account and he has maintained the same type of accounts in the previous years. In that view rejection of accounts for 1974-75 is improper and the enhancement is uncalled for. He lastly urged that, entry serial No. 5 of the tax schedule in respect of tax-free goods shows that "vegetable green or dried other than medical preparation and ginger and when sold in sealed containers" are tax-free. In that view the assessment of tax on vegetable seeds treating ....
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....469/75 dated 23rd April, 1976 which brought a change in the aforesaid schedule. The relevant entries therein are as follows. Entry No. 14 : Green vegetables including onion and potatoes but excluding ginger, garlic and lemon. Further, under notification No. 472/76 dated 23rd July, 1976, they have made a specific entry for taxing vegetable seeds at the rate of 4% which has been given specific treatment for the purpose of taxation and the rate of tax is only 4% not 5% as unclassified goods. 8. In this retrospective, it is to be seen whether in absence of any entry for vegetable seeds during three relevant years whether vegetable seeds can be taxed as unclassified goods. Admittedly, vegetable seeds are dry vegetables but capable of ge....
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....s in the three years must be annulled. 9. Further is appears that during the year 1971-72 the appellant purchased onion seeds amounting to Rs. 2,035-80 and onions only worth Rs. 5,101.00. When onion is tax-free and there is no exception for onion seeds in the tax-free item, as there is no apparent distinction between onion seeds and onions, the same could not have been taxed. 10. In view of that second appeals No. 1216-1217 of 1976-77 which relate to the assessment u/s. 12(8) for the year 1971-72 and 1972-73 in respect of vegetable seeds are allowed and tax imposed thereon are annulled. Tax if paid be refunded by the assessing officer. 11. The next thing for consideration is whether the accounts of the year 1974-75 are to be reject....
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....2 to the G.T.O. and it must be treated as tax-free article in view of the decision already taken. The next objection is that the appellant has not issued sale bill and he has not shown collection of sales tax individually. But there is no finding that the appellant has not maintained accounts showing collection of sales tax of the materials sold by him. If he has maintained such accounts, the same be scrutinised and if he has maintained separate accounts, deduction for collection of sales tax be allowed. The other objection for rejecting the account is regarding certain bills in the mater fertilisers which have been defaced and overwirtten. But the appellate court has overruled that objection and has remarked as follows. " The appellant ....