TaxTMI 
TaxTMI 
1974 (5) TMI 103
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....les Tax Act the turnover of vanaspati is taxable at a single point, the point being the sale by the manufacturer in the case of goods manufactured in U.P. and the sale by the importer in the case of goods imported from outside U.P. The Act, as it stood on the material time, did not contain a definition of the word "importer". Such a definition was given in rule 2(d-1) of the U.P. Sales Tax Rules. Under sub-clause (c) of clause (d-1) an importer means "in a case where the goods are imported into Uttar Pradesh otherwise than as a direct result of a sale, the dealer who makes the first sale after such import". The petitioner was treated as an importer in respect of the turnover of vanaspati sold by him on commission basis and was subjected to ....
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....ti was taxable at single point, at the point of sale by the manufacturer or at the point of sale by the importer. This court held that as khandsari was taxable at the point of sale by the manufacturer In the case of goods manufactured in U.P., it was the manufacturer who alone was liable to tax, even though he had sold the goods not himself but through a commission agent. Here we are not dealing with a case of sale of vanaspati manufactured inside U.P. but with vanaspati manufactured outside U.P. The sale admittedly took place in U.P. and, as such, is liable to tax. Since it cannot be taxed in the hands of the manufacturer, he being a non-resident dealer, by virtue of rule 2(d-1) a person who effects the first sale in Uttar Pradesh of such ....
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....ot subjected to tax in the State, the same goods cannot be subjected to tax if imported from outside the State. Now the sale of vanaspati manufactured in U.P. is not exempt from tax. It will, therefore, be open to the State Government to levy a similar tax on vanaspati imported from outside Uttar Pradesh, without offending articles 301 and 304 of the Constitution. The mere fact that the incidence of tax in the case of vanaspati manufactured inside the State and the vanaspati imported from outside the State is different does not in any way violate article 304 of the Constitution. The last contention raised by Mr. Khare is that rule 2(d-1) of the U.P. Sales Tax Rules is ultra vires of the rule-making powers of the State Government conferred ....