1963 (10) TMI 23

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.... appellant for assessment to tax under section 4(6) of the C.P. and Berar Sales Tax Act, 1947, was justified?" 2.. The facts of the case so far as they are necessary for this reference may be briefly stated. The applicant, who is a registered dealer, purchases timber locally and sells such timber mostly to persons outside this State. He was assessed to tax on sales made by him in the year 9th November, 1957, to 22nd October, 1958. He had purchased timber worth Rs. 2,62,919.67 on declarations but, instead of selling the timber in this State for the purpose of consumption in this State as he undertook to do by his declarations, he exported the timber. Therefore, under section 4(6) of the Central Provinces and Berar Sales Tax Act, 1947, the....

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.... 3.. Having heard the counsel, we are clearly of opinion that Rs. 2,62,919.67 paid by the applicant for purchasing the timber which he exported to a place outside the State was rightly included in the turnover. Section 4(6) of the 1947 Act reads: "Where any goods are purchased by a registered dealer as being intended for resale by him by actual delivery in Madhya Pradesh for the purpose of consumption in that State, or as being goods specified in such dealer's certificate of registration as intended for use by him as raw materials in the manufacture of any goods for sale by actual delivery in Madhya Pradesh for the purpose of consumption in that State and such goods are utilised by him for any other purposes, the price paid by him for such....

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....R. 509; 6 S.T.C. 687. In our opinion, that case is of no assistance to the applicant because there the initial sales, for which declarations were given, were not liable to tax. This is what the Supreme Court stated: "It was, however, urged that the petitioners had made declarations at the time of making the purchases of this finished tobacco that they had purchased the said goods for use as raw materials in the manufacture of goods for sale for actual delivery in Madhya Pradesh for the purpose of consumption in that State and that by virtue of the provisions of section 4(6) of the Act they were liable to pay the purchase tax on the purchase price of goods which had been utilised for any other purpose. Whatever steps the State of Madhya Prad....