V. N. Khare, J. - (1.) This Civil Appeal is directed against the judgment dated 26th June, 1992 passed by the High Court of Kerala.
(2.) According to the appellant, it purchases arecanuts locally and after processing them dispatches the same to agents in the North Indian States for sale on consignment who affect sales according to the market trends and render accounts, sales statements to the appellant. Drafts or cheques for sale proceeds less expenses and commission are also sent simultaneously and the appellant has been paying sales tax for each month by working out the purchase value involved in the sales effected by the agents monthly. It is also stated that at the close of each financial year sometimes certain stocks of goods remain with the agents and the appellant pays sales tax on the purchase value of such stock in subsequent year as and when the stock is sold and the accounts of sales in respect thereof are received from the agents as the stock acquires the quality of last purchase only when the goods are sold.
(3.) The final sales tax assessment of the appellant for the year 1987-88 was completed by an order dated November 30, 1989. While passing the assessment order the Sales Tax Officer disallowed the contention of the appellant that closing stock valued at Rs. 38,91,289.52 pending with the agents outside the State is liable to be excluded. Consequently, the appellant was sent a demand for Rs. 1,79,400.00 and surcharge of Rs. 11,953.00. Aggrieved, the appellant challenged the said order of assessment by means of a Writ Petition before the High Court of Kerala, but the same was dismissed and a Writ Appeal against the said decision of the learned single Judge preferred before the Division Bench of the High Court also came to be dismissed by the judgment under appeal.;