1980 (9) TMI 248

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....it of Notification No. 4290-3070-V-ST dated 14th December, 1967, if other conditions are satisfied?" 2.. A few basic facts as stated by the Tribunal may be stated. The assessee commenced his business of selling second-hand bardanas (gunny bags) on 25th November, 1967. His tax liability was determined with effect from 25th November, 1967, and he was assessed to tax for the period 25th November, 1967, to 31st March, 1968. During this period his gross turnover was Rs. 27,752. The Sales Tax Officer assessed him to tax at the rate of 7 per cent. 3.. The assessee had denied his liability to tax and claimed exemption in view of Notification No. 4290-3070-V-ST dated 14th December, 1967, reproduced in the order of the Board of Revenue, annexur....

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....1) (2) (3) --------------------------------------------------------------------------------------- Second-hand gunny From the date of When sold by a dealer registered bags (bardana*) inpublication of under the Madhya Pradesh General cluding secondthis notification in Sales Tax Act, 1958, dealing excluhand hessian (tat*). the M.P. Gazette sively in second-hand gunny bags and to 31st March, second-hand hessian and whose turn1968 (both days over in a year does not exceed inclusive). Rs. 50,000 on his furnishing a true declaration in the appended form that the goods in respect of which exemption is claimed have neither been imported nor manufactured by him. APPENDIX Declaration I...................a dealer holding registration ce....

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....fined under this Act and, therefore, a dealer who has carried on business for less than 12 months will not get the benefit of this notification. 6.. We cannot accept this construction of the notification. As observed by the Tribunal the exemption was made to help small dealers dealing exclusively in second-hand gunny bags. To refuse benefit to a dealer who carried on business only for a part of the year and whose turnover was less than Rs. 50,000 would clearly be contrary to the purpose of the notification and, therefore, the word "year" occurring in column (3) of the said notification has to be understood in its general sense meaning the assessment year during which the dealer actually carried on his business. There could be no legal ba....