1988 (2) TMI 454

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.... in the facts and circumstances and consequently no tax can be levied at the point of purchase. The second contention is that there is no machinery provision for the purpose of determining the purchase turnover of jaggery and the procedure to levy tax has not been prescribed. Although jaggery is included in the Fifth Schedule on 11th January, 1976, there is no corresponding inclusion of that item in rule 5 of the Andhra Pradesh General Sales Tax Rules. Therefore, G.O. Ms. No. 473, Revenue, dated 18th March, 1981 was issued. According to the learned counsel, between 1976 and 1981, there is no machinery provision for the determination of the purchase turnover of jaggery and consequently the declaration relating to the levy of tax contained in....

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....e jaggery is purchased from the dealer, the dealer is not registered under the Act. Therefore, the purchases are made from a person who is not a registered dealer and the proviso comes into operation, with the result that the assessee in this case is liable to pay tax at the point of purchase. In our opinion, the Tribunal was justified in rejecting the assessee's contention in this regard. As regards the second contention, learned counsel invites our attention to section 5 of the Act which is the charging section. It provides for the levy of tax on sales and purchases of goods. Sub-section (3) of section 5 states that for the purposes of this section and other provisions of the Act, the turnover on which a dealer shall be liable to pay tax,....

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.... specified in section 5(3) and 5(4) of the Act, it would not be permissible to levy tax on the purchase turnover of jaggery and consequently no tax can be levied on the purchase turnover of jaggery between 11th January, 1976 and 18th March, 1981, during which period rule 5(2) of the Rules did not contain the relevant provision relating to the determination of the purchase turnover of jaggery. The argument appears to be attractive at first blush because it is elementary that without prescription of the relevant modalities for determination of the sale turnover and purchase turnover and the manner in which the assessment should be made, the entire endeavour to make an assessment would be frustrated. Between 1976 and 1981, the necessary presc....