1985 (3) TMI 242

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....cal and General Stores at Leilunga dealing in medicines and general goods. He is registered under the Madhya Pradesh General Sales Tax Act and he follows Diwali Year for the purpose of his accounts. The petitioner applied under section 16 of the M.P. General Sales Tax Act for the proposed business of dealing in forest produce at Rajgarh and the address of this business was given as Lal Tanki Chouk, Raigarh. The Sales Tax Officer, however, rejected the application. 3.. It is alleged that the dealer took a lease of Government Forest, Raigarh, in the month of March, 1977, for collection of chironji for a sum of Rs. 2,200 from the Divisional Forest Officer, Raigarh Division. The contract was for purchase of chironji from the forest departmen....

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....ated 27th February, 1982, rejected the revision petition and hence the present petition is filed. 6.. Learned counsel for the petitioner contended that the petitioner took the contract of chironji from the forest department. The system of collection was that the tribals and labourers collected chironji whom the petitioner made payments for collection and as the petitioner could not make arrangements for obtaining himself the entire quantity, he issued transit passes to those who collected the chironji and wanted to carry it out of area. The forest department in this case, however, charged sales tax from the petitioner on the chironji so collected. In these circumstances, as the goods were tax-paid goods and the assessee sold them to othe....

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....ized by the flying squad is only the account of chironji about which transit passes had been issued. There is no material also with the sales tax department to indicate that this was not the chironji of the forest which was purchased by the assessee under the contract Apparently, the manner of collection may vary but when after collection it is sold to other dealers, it could not be said that this chironji is not of the forest. Admittedly, chironji is a forest produce and, therefore, learned counsel for the petitioner appears to be correct that this chironji was purchased by him from the forest department under a contract and the forest department had paid sales tax already on this chironji, this transaction of sale of chironji could not be....