TaxTMI 
TaxTMI 
1963 (4) TMI 32
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....s places in the country. One of the dealers selected by him for sale of sugar at the controlled price was the assessee and he issued a permit to it authorising it to sell sugar. He sent sugar from Bombay to Lucknow; the railway receipt was prepared in his name and was sent to the State Bank at Lucknow. The. State Bank received the price from the assessee and delivered the railway receipt to it after making the necessary endorsement and the assessee took delivery at Lucknow. Later it sold it in the course of its business and the question arises whether it was liable to pay sales tax on the turnover of the sale. Under section 3 of the Act every dealer has to pay sales tax at a certain rate on his turnover in each assessment year. This provision is subject to section 3-A laying down that the State Government may declare that the turnover in respect of any goods shall not be liable to tax except at such single point in the series of sales by successive dealers as it may specify. In exercise of this power the State Government issued a notification No. ST-822/X dated 1st April, 1953, declaring that the turnover in respect of sugar shall not be taxed except "in the case of sugar imported ....
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....ld that clauses (a) and (b) of rule 2(d-1) did not apply to make the assessee an importer but disagreeing with him held that clause (c) applied. He stated as a finding of fact that the sugar had not been imported into Uttar Pradesh as the direct result of a sale and this finding excluded (a) and (b) from application. He further found that the sugar had been imported into Uttar Pradesh by the Regional Director and not by the assessee. Though according to the ordinary meaning the Regional Director could be the importer, according to the artificial meaning given through rule 2(d-1) the assessee was the importer, because it was the first dealer who made the first sale after the import. In fact the first sale, after the import, was made by the Regional Director, but he was not a dealer and, therefore, it was not a sale by a dealer. The Judge (Revisions) rejected the assessee's contention that the rule should be interpreted in such a way that the assessee, who had not imported the sugar, could not be brought within the definition of "importer"; he saw no justification for considering the dictionary meaning of importer when interpreting rule 2(d-1). The assessee then contended that the de....
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....wo cases lies the case in which the vendor remains outside Uttar Pradesh and the vendee remains in Uttar Pradesh and the transaction of sale takes place between them in consequence of which goods are sent by the vendor to the vendee into Uttar Pradesh. This is the case of goods being imported into Uttar Pradesh as the direct result of a sale. It has recently been held by the Supreme Court in State Trading Corporation of India Ltd. v. State of Mysore[1963] 14 S.T.C. 188; A.I.R. 1963 S.C. 548. , that "a sale occasions the movement of goods from one State to another within section 3(a) of the Central Sales Tax Act, when the movement is the result of a covenant or incident of the contract of sale". Under a permit system in operation in Mysore State a purchaser of cement was given a permit under which cement was to be supplied to him by a cement manufacturer outside Mysore State. The manufacturer had to send cement to the Marketing Company in Mysore State and the purchaser had to place an order for cement with the Marketing Company and it was held that the sale of cement to the purchaser was an inter-State sale as defined in section 3(a) of the Central Sales Tax Act, because the contrac....
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.... if the Sales Tax Act contained a definition of the word "importer" it would apply to the word used in a notification issued under section 3-A. Here the definition is contained not in the Act, but in the rules made in exercise of the powers conferred by section 24 of it. Sub-section (4) of section 24 lays down that "all rules made under this section shall be published in the Gazette, and upon such publication shall have effect immediately as if enacted in this Act". This creates a legal fiction; by virtue of it rule 2 (d-1) shall have effect as if it were enacted in the Act and, therefore, by virtue of section 20 of the General Clauses Act it will apply to the notification. In any case question No. (1) assumes that the definition is applicable to the word used in the notification. Applying rule 2(d-1) to the facts of this case, we come to the conclusion that the assessee was the importer of sugar under clause (c) or under clause (b). If it be said that sugar was imported into Uttar Pradesh as a direct result of a sale, namely the sale made by the Regional Director to the assessee, the sugar was intended to be resold in the same condition and clause (b) would apply. The pe....