TaxTMI 
TaxTMI 
1974 (8) TMI 86
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....mpt from sales tax. The assessment relates to the period from 25th October, 1965, to 12th November, 1966. During the said period, the respondent-assessee acted as the agent of the Government in procuring foodgrains and distributing the same. The assessing authority in the assessment order stated that the assessee was acting as procuring and distributing agent in jawar, paddy and other foodgrains and food products on behalf of the Government of Mysore, but relying on the circular issued by the Commissioner of Commercial Taxes, dated 7th February, 1967, which granted exemption only in respect of sales made after 1st January, 1967, held that the turnover during the relevant period was not exempt. A sum of Rs. 18,861.66 was assessed as the tax....
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....s whether the respondent-assessee is liable to be assessed to tax under section 5(1) of the Act. The levy of sales tax on sale of foodgrains is made by sub-section (1) of section 5 of the Act, which states thus: "Every dealer shall pay for each year tax on his taxable turnover at the rate of three per cent of such turnover: Provided that if and to the extent to which such turnover relates to gur, pulses including their dhals, flour and husks, wheat (including atta, maida, soji and bran), bread, paddy, rice (including parched rice and beaten rice and bran), ragi, jola. maize, bajra, navane, samey, and gunny bags, bardans (including batar) and hessian cloth, the tax shall be calculated at the rate of one and a half per cent of such turnove....