1954 (3) TMI 49

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.... are for revising the orders of the Appellate Tribunal, and they have come up for admis- sion. The assessees are registered manufacturers of groundnut oil. They purchased groundnuts and extracted oil from them but sold the oil out- side the State, i.e., in Bombay. They were taxed on the turnover of the purchase price. They now claim that, as the oil was sold outside the State, and as that sale ....

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.... 18 subject to the conditions specified in that rule, shall be deducted for ascertaining the net turnover on which the assessment is levied. That is clear from the opening words of rule 5. The object, therefore, of rule 5 is to arrive at the taxable net turnover. To determine the net turnover, certain deduc- tions are allowed under that rule, and sub-rule (k) of rule 5(1) relates to the groundnuts....

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....ted those groundnuts into oil and sold the oil, on the sale turnover of the oil which includes the purchase price of the groundnuts, he should not again be called upon to pay the tax. For that purpose and in order to avoid double taxation on the same commodity this deduction is allowed. All this, of course, is on the assumption that otherwise the entire turnover of the sale of the oil would be lia....