TaxTMI 
TaxTMI 
1967 (4) TMI 136
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....Cases Nos. 105 and 125 of 1963. The High Court by its common judgment dated August 11, 1964, confirmed the orders of the Sales Tax Appellate Tribunal. A common point of law is involved in both the cases and it will suffice if we give facts in Tax Case No. 105 of 1963 (Civil Appeal No. 633 of 1966) in which the respondent was one T. Narayanaswami Naidu, hereinafter referred to as the assessee. The assessee is a dealer in cotton and cotton seeds. Before the Additional Commercial Tax Officer, Coimbatore, he claimed to deduct the sum of Rs. 12,32,756.45 as the value of purchases other than the last purchases of cotton. The Commercial Tax Officer exempted Rs. 10,11,534.40 but disallowed the remaining amount on the ground that cotton worth Rs.....
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....3, the tax under this Act shall be payable by a dealer on the sale or purchase inside the State of declared goods at the rate and only at the point specified against each in the Second Schedule on the turnover in such goods in each year, whatever be the quantum of turnover in that year." In other words, this section lays down that in respect of declared goods we have to took at the Second Schedule in order to find out the point at which the tax would be payable by the dealer. The Second Schedule describes the declared goods in respect of which a single point tax only is leviable under section 4. Item 2 of the Second Schedule is "cotton, that is to say, all kinds of cotton (indigenous or imported) in its un- manufactured state, whether gi....
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.... for each year at the rate of two per cent. of his taxable turnover." Section 2(p) defines "taxable turnover" to mean "the turnover on which a dealer shall be liable to pay tax as determined after making such deductions from his total turnover and in such manner as may be prescribed", and "year" is defined to mean "financial year". "Turnover" is defined in section 2(r) as follows: " 'turnover' means the aggregate amount for which goods are bought or sold, or supplied or distributed, by a dealer, either directly or through another, on his own account or on account of others whether for cash or for deferred payment or other valuable consideration, provided that the proceeds of the sale by a person of agricultural or horticultural produc....
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.... stock in hand, the stock in hand cannot be said to have been acquired by last purchase because he may still during the next assessment year sell it or he may consume it himself or the goods may be destroyed, etc. He would be entitled to claim before the assessing authorities that the character of acquisition of the stock in hand was undetermined; in the light of subsequent events it may or may not become the last purchase inside the State. In our view this construction is in consonance with section 15 of the Central Act. If the argument of the learned counsel for the State were to be accepted it would mean that the States could with impunity levy purchase tax on declared goods at more than one stage, i.e., on purchases in the hands of o....