1952 (8) TMI 20

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....s leading to the reference as stated by the learned Commis- sioner of Taxes are as follows: The petitioner has a rice-milling business at Gauhati which is registered under the Act and supplied rice packed in bags to the Procurement Department of the Government of Assam. The mill also sold some quantities of khudi (broken rice) and bhushi (rice bran) in the open market. Being a registered dealer and rice being an exempt- ed commodity under the Act, the turnover from bags supplied to the Procurement Department and from khudi and bhushi sold in the open market was assessed to tax by the Superintendent of Taxes, Gauhati, on 9th May, 1951. This assessment was challenged before the Assistant Commissioner of Taxes by means of an appeal, dated 5th ....

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....d. (3) That the assessee made no profit on the price of gunny bags supplied as the Government was charged for the actual price at which the gunny bags were bought and it could not, therefore, be a subject for assessment. In regard to the first branch of Mr. Ghose's argument, there is not much of substance. As defined in the Assam Sales Tax Act, a "dealer" means any person who carries on the business of selling or supplying goods in the Province whether for commission, remuneration or otherwise and the word "goods" means under the Act, all kinds of movable property other than actionable claims etc. Here, undoubtedly gunny bags come within the definition of "goods" and it is also admitted that the suppliers charged the Government for the bags....

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.... referred, we answer the point in the positive, that is the turnover from the supply of bags was liable to be taxed under the Assam Sales Tax Act, 1947. With regard to the second point of reference, that is whether khudi is a form of rice and whether it is exempt from assessment under Item 1 of Schedule III of the Assam Sales Tax Act, 1947, the learned Commis- sioner of Taxes has expressed his view that it is a form of rice and is exempt from assessment under Item 1 of Schedule III. The learned Junior Govern- ment Advocate concedes that it is so and as a matter of fact, it appears to us that khudi is nothing but broken rice and comes within Item 1 of Schedule III of the Act which excludes from assessment all cereals and pulses including all....