1959 (4) TMI 21

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....798-14-8 and the taxable turnover at Rs. 76,858-14-2, out of which Rs. 57,061-11-8 was subjected to an additional tax of 6 pies in the rupee under section 4(2) of the Hyderabad General Sales Tax Act. The petitioner challenges the assessment on the ground that there is no justification for the levy of additional tax on the sales turnover of chuttas because they are different from "cheroots and cigars" which are included in item 12 of Schedule II of the Act. Item 12 of Schedule II reads: "Goods on which an additional tax is leviable: 12.. Cigars, cheroots, pipe tobacco and tinned tobacco used in Cigarettes and paper-loose, cigarettes costing more than two annas per packet of ten cigarettes." Item 12 mentioned in section 3(2-A) of the Madra....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....etween the process involved in the manufacture of cigars and cheroots on the one hand and chuttas on the other hand. It must therefore be held that the contention of double taxation has no foundation. As rightly pointed out by Mr. Ranganathachari, the decision of the Supreme Court in Kailash Nath v. State of U.P.[1957] 8 S.T.C. 358. does not seem to have been brought to the notice of the learned Judges who decided the above case. Their Lordships of the Supreme Court have held that printing and dyeing the original cloth does not result in a metamorphosis and notwithstanding the change of appearance and colour, the cloth remains the same. I do not think that the principle of this decision can be applied to the present case. It must therefore ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Madras General Sales Tax Act is an analogous provision and is in the following terms: "Cigars and cheroots sold at less than Six pies for every rupee two annas per cigar or cheroot. in the turnover." It is contended by Mr. Ranganathachari that chuttas which are prepared from country tobacco involve no manufacturing process, and that the tax on chuttas at the purchase point after taxing raw tobacco at the sale point amounts to double taxation. This very point was considered by a Division Bench of this Court, consisting of Subba Rao, C.J., and Jaganmohan Reddi, J., in P.T.T.C. & S. Merchants Union v. State of Andhra Pradesh[1958] 9 S.T.C. 723 at p. 740. , where it has been held that cigars and cheroots involve a process of manufacture and tha....