1960 (3) TMI 37

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....ronounced by CHANDRA REDDY, C.J.-The petitioners Abdul Bakshi and Brothers, Tanners, Hyderabad, are a firm of merchants carrying on business in skins and hides. During the year 1954-55, they purchased tanning bark of the value of Rs. 61,431-14-9 for use of the process of tanning raw hides and skins. The Department chose to tax this purchase of tanning bark on the ground that it falls within the pu....

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.... Act, 1950, the bark purchased by them for use in the process of tanning skins and hides was exigible to tax although the firm might not have been carrying on the business in tanning barks. We pause here to read the definition of "dealer" contained in section 2(e) and rule 5(2) of the said rules, which are the foundations of the action of the Department in this behalf. "'Dealer' means any perso....

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....ssessee must be carrying on business in the particular category of articles specified in that sub-rule. It would be straining the language of the rule to interpret it as applying to any dealer who is doing some business. In our opinion, it is only an assessee doing business in the particular type of goods mentioned therein that would be governed by this rule. The mere purchase of some goods for co....