TaxTMI 
TaxTMI 
1959 (12) TMI 29
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....les Tax Act, 1939, every dealer is liable to pay for each year a tax on his total turnover for such year. Section 5, however, grants certain exemptions and reductions of tax in certain cases, subject to such restrictions and conditions as may be prescribed, including the conditions as to licence and licence fees. Under section 5, clause (vi), the sale of hides and skins, whether tanned or untanned, is liable to tax only at such single point in the series of sales by successive dealers as may be prescribed. Rule 16 of the Madras General Sales Tax (Turnover and Assessment) Rules, 1939, prescribes that in the case of hides and skins the tax payable under section 3(1) shall be levied in accordance with the provisions of that rule. Under sub-rul....
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....r but also during the latter half of the year notwithstanding the separation of the State. This, according to him, follows from a proper construction of section 53 of the Andhra State Act (XXX of 1953). In order to appreciate the point raised in this respect, it is necessary to indicate the changes brought about by the Andhra State Act (XXX of 1953) which was enacted with a view to provide for the formation of the State of Andhra and for matters connected therewith. As from the appointed day, i.e., 1st October, 1953, under section 3 "there shall be formed a State of Andhra comprising the territories which immediately before that day were comprised in Srikakulam, Visakhapatnam, East Godavari, West Godavari, Krishna, Guntur, Nellore, Kurnool,....
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....es not support the contention of the petitioner that the licence held by him would still entitle him to the concession in the matter of single point tax. The short answer to the petitioner's contention is that he was not denied the privileges attached to the licence during its currency. These privileges still continue. They were only not operative beyond the limits of the State. Therefore it was the emergence of the new State of Andhra in and by reason of the enactment of the Andhra State Act by the Parliament that has resulted in this inconvenience to the petitioner and not by reason of any action taken by the Government of the State. That Parliament is entitled to carve out a new State or reorganize an existing State is beyond controvers....