1974 (7) TMI 109

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.... C.J.-This revision petition under section 23(1) of the Karnataka Sales Tax Act, 1957, hereinafter called the "Act", preferred by the dealer relates to the assessment year 1963-64. The dealer is the Kampli Co-operative Sugar Factory Limited, Kampli, which carries on the business of manufacturing sugar from sugarcane purchased from growers. The dealer also sells sugarcane setts to the growers fr....

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....the relevant assessment year amounted to Rs. 4,00,541.05, which was claimed to be exempt from tax under rule 6(4)(f)(i) of the Sales Tax Rules. The turnover of sales relating to sugarcane setts sold by the dealer to the growers amounted to Rs. 7,691.02. The dealer contended that sugarcane setts come within the meaning of the word "sugarcane" and are therefore liable to tax at the purchase point....

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....the case, the Tribunal was right in holding that the sum of Rs. 4,00,541.05 paid by the dealer by way of transportation charges to the growers is not exempt from tax? (2) Whether the turnover relating to sugarcane setts is liable to tax under section 5(1) of the Act?" The first question is concluded by the decision of this court in Pandavapura Sahakara Sakkare Kharkhane (P.) Ltd. v. State of....

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....s of the contract. Therefore, on the first question, the Tribunal was right in holding that the sum of Rs. 4,00,541.05 was liable to be included in the turnover and taxed under section 5(3)(b) of the Act. In regard to the second question, the Madras High Court in Sakthi Sugars Limited v. Deputy Commercial Tax Officer, Bhavani[1969] 23 S.T.C. 232., has described (at page 236) what is meant by su....