GULATI, J. - (1.) THIS is a reference under section 11(1) of the U.P. Sales Tax Act read with section 9 of the Central Sales Tax Act.
(2.) THE assessee is a dealer in oil-seeds, foodgrains, etc. For the assessment year 1959-60 he filed quarterly returns showing taxable turnover of various commodities. During the course of assessment the Sales Tax Officer found that the assessee had sold foodgrains worth Rs. 9,916.26 and oil-seeds worth Rs. 12,805.66 in the course in inter-State trade and, as such, he was liable to Central sales tax in respect of those sales. The assessee denied his liability to tax under the Central Sales Tax Act and contended that the sales were intra-State sales. His contention was that sales were made to parties of U.P. and under their instructions the goods were despatched to places outside U.P. This contention of the assessee was not accepted by the Sales Tax Officer and he was assessed to tax under the Central Sales Tax Act. The assessee appealed and the appellate authority set aside the assessment order with a direction to the Sales Tax Officer to afford an opportunity to the assessee to lead evidence to prove his case that the sales were intra-State and not inter-State. The assessee appeared before the Sales Tax Officer in remand proceedings but did not lead any evidence. In fact, he admitted that the sales were inter-State sales. The Sales Tax Officer accordingly made a fresh assessment and imposed tax at the rate of 7 per cent on foodgrains and 3 per cent on oil-seeds. The assessee again appealed and contended that the transactions in dispute were bilticut transactions inasmuch as the goods were consigned to self to destinations outside U.P. and the railway receipts were sold to U.P. dealers. The appellate authority dismissed the appeal holding that the transactions amounted to inter-State sales by transfer of documents of title during the course of movement of the goods from this State to other States. The assessee also disputed the rate of tax in respect of foodgrains, but that plea was also rejected and the assessment order was confirmed.
(3.) THEREAFTER the assessee applied in revision contending that the sales were intra-State sales and also disputed the rate of tax on foodgrains which according to him was 1 per cent and not 7 per cent. The revising authority has dismissed the revision but at the instance of the assessee has referred the following question for the opinion of this court : "Whether, under the facts and circumstances of this case, the sales in question of foodgrains for Rs. 9,916.26 and of oil-seeds for Rs. 12,805.66 by the applicant amounted to inter-State sales on which the applicant should pay Central tax ? If so, what should be the rate of tax payable on these turnovers ?" ;