TaxTMI 
TaxTMI 
1956 (8) TMI 34
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....sold by him through his commission agents at Bangalore. Out of the total turnover, turnover to the extent of Rs. 9,499-15-8 represented his trans- actions of outright sales to persons in Bangalore whereas the balance related to the raw hides and skins sent by him to his commission agents at Bangalore who sold them in Mysore State on his account. He was assess- ed under the provisions of the Turnover and Assessment Rule 16(2)(ii) being the last purchaser in the series of sales of the goods effected in Andhra State. The Tribunal held that the transactions in respect of Rs. 9,499-15-8 would attract the provisions of rule 16(2)(ii) of the Turnover and Assessment Rules, but the balance of the total turnover would not be governed by the said prov....
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....o a tannery, that is to say, when they will cease to be untanned hides and skins any longer. The other way was when the untanned hides and skins were exported outside the State. Thereafter, there could be no further trans- action of sale in the series. In rule 16(2)(i) a provision is made for the sale of untanned hides and skins to a tanner, and in rule 16(2)(ii), for such hides and skins which are exported. Then, the rule proceeds to fix the liability to tax. In the case of untanned hides or skins sold to a tannery, the tax is to be levied from the tanner on the amount for which the hides and skins were bought by him. In the case of hides and skins exported, the tax is levied from the dealer who was the last dealer who bought them in the S....
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.... licensed dealer from another and it is at that stage that the taxable event, namely, the last purchase, and the person who is liable to pay the tax, namely, the last purchaser, are both determined. In other words, the tax is really one on the transaction of purchase anterior to the sale for export or export sale. The turnover which is taxable under the Act may be the sale or purchase turnover and the State has the option to collect the tax from the dealer on his purchase turnover." The tax therefore is on the transaction of the purchase though the taxable event is determined at the stage of the sale to the tanner or the sale for export. For, in either case the series of sales of untanned hides purchased terminate in the State at that stage....
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....r may himself carry the goods to Mysore State and there sell them to persons in that State. A commission agent in Mysore State may book orders in advance and the dealer in Andhra may consign the goods to Mysore against those orders. The seller may send the goods to his commission agent in Bangalore who may thereafter sell them to persons in that place. Whatever may be the mode adopted, the sale is effected only by exporting the goods from Andhra State to Mysore State. If the object of the Legislature is to catch the transactions in the net of taxation before they leave the State, on principle there cannot be a distinction for the purpose of taxation in regard to goods transported by the adoption of diverse methods. The words "sale for expor....