NAGAUR SAHAR KENDRIYA SAHAKARI KAR VIKRAYA SANGH Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) -

(2.) THIS writ petition raises a short question about the validity of the explanation appended to rule 15 of the Rajasthan Sales Tax Rules, 1955, hereinafter to be referred as the "Rules" which were made by the State Government in exercise of their powers under the Rajasthan Sales Tax Act, 1954, hereinafter to be referred as the "Act" and it arises in the following way :- The petitioner is Messrs Nagaur Sahar Kendriya Sahakari Kar Vikraya Sangh which will hereinafter be referred as the "Sangh". THIS Sangh was registered as a dealer under the Act. It submitted a return under the Act for the purposes of sales tax for the period 1st July 1960 to 30th June, 1961. The general turnover was shown as Rs. 7,36,993 out of which the turnover in respect of cereals sold by it during the relevant period was Rs. 7,31,851. About this it was claimed by the Sangh that it was not liable to sales tax under the Act. The Sales Tax Officer considered the stand taken by the Sangh but in disallowing its claim he came to the conclusion that the sale pertaining to the cereals was also taxable. The contention of the petitioner before the Sales Tax Officer was that the cereals had been purchased by it from certain dealers in Ganganagar who were unconditionally exempt on the basis of exemption certificates held by them. It was also submitted that wheat was supplied by the Government departments and exemption was claimed in respect of such supply as well. The Sales Tax Officer, after considering the matter, came to the conclusion that the explanation to rule 15, which defined for purposes of the rules as to what was the first point in the series of sales, was attracted in the case and since the sale by the petitioner was the first sale in the series of sales by a registered dealer, the petitioner was held liable to pay the sales tax.

(3.) HAVING considered the matter, we do not find any good ground to interfere with the order of assessment passed against the petitioner-Sangh. The result is that the writ petition fails and is hereby dismissed. In the circumstances of the case we leave the parties to bear their own costs. Petition dismissed.