1974 (5) TMI 107

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.... petitioner is a dealer in cotton, and was having extensive trade in cotton of inter-State character. In respect of the periods ending Deepavali 1965, Deepavali 1966 and Deepavali 1967, he was assessed to tax under the Central Sales Tax Act. While doing so the turnover in respect of cotton was exempted by the sales tax authorities from payment of sales tax having regard to section 9 of the Central....

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....rnover. After the amending Act was passed, the assessing authority commenced rectification proceedings in respect of the three assessment years ending Deepavali 1965 to 1967 and ultimately held that the petitioner was liable to pay Central sales tax in respect of its turnover in cotton. Aggrieved by the said orders the petitioner has filed the above three petitions. 2.. Sri K. Srinivasan, the l....

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....he Act. The evidence concerning the transaction must show that the buyer had agreed to pay sales tax in addition to the price and the seller's account books should disclose such amounts separately. Where there is absence of such evidence, it cannot be said that amounts were collected by the dealer in the character of or as being tax. Therefore, in our judgment, a dealer can be said to have collect....

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.... the said amounts collected as being tax had been shown separately in the account books of the seller, would still bring the turnover in question within the protection of section 10(1) of the amending Act, 1969. In this case there is no evidence to show that the dealer had shown the amounts which he had collected by way of tax separately in his account books. Hence, in view of the observation made....