COMMISSIONER OF COMMERCIAL TAXES IN MYSORE BANGALORE Vs. SAMANT BROTHERS

JUDGEMENT

(1.) This is a reference under section 34(1) of the Bombay Sales Tax Act, made by the Sales Tax Appellate Tribunal, at the instance of the Commissioner of Commercial Taxes in Mysore who, for the purpose of that section, is the Collector, referred to in it.

(2.) During the year 1954-55, the respondent who will be referred to as the assessee and who was a registered dealer, as defined by the Bombay Sales Tax Act, which will be referred to as the Act, purchased butter of the value of Rs. 83,718-1-0 from unregistered dealers. Out of this butter so purchased, a portion of the value of Rs. 38,308 was sold by the assessee to others. The remaining quantity of the value of Rs. 42,969 was made into ghee and then sold. The Sales Tax Officer exempted the turnover of Rs. 38,308 which was the value of the butter sold, but assessed the purchase turnover of Rs. 42,969 attributable to that part of the purchase of butter which was subsequently converted into ghee, under the provisions of section 10(a) of the Act.

(3.) In an appeal from this assessment, that order of assessment was confirmed by the Deputy Commissioner and in revision by the Commissioner of Commercial Taxes in Mysore. But, in the further revision petition presented by the assessee to the Sales Tax Appellate Tribunal, the assessment made by the Sales Tax Officer was set aside and the matter was remanded to the concerned assessing authority with a direction to reopen the matter, examine the accounts of the assessee and determine the exact taxable turnover. After this order was made, the Commissioner of Commercial Taxes in the new State of Mysore, who was named as the authority corresponding to the Collector, specified in section 34 of the Act, made an application under that section requiring the Tribunal to refer to this Court, the following question of law for its decision :-