Aggrieved by the assessment orders made against it by the respondent, the appellant moved the High Court of Kerala under Article 226 of the Constitution to quash the assessment order.
The appellant produced declarations before the respondent in respect of the sales to dealers in Goa but they were number produced within the time prescribed in the numberification.
The rate of tax on the sale of goods of the description mentioned in Sub section 3 of that section to a registered dealer was 1 per cent, of the turnover during the relevant year.
8,28,859.40.
Pondicherry became Union Territory with effect from August 16, 1962, as a result of the Constitution Fourteenth Amendment Act, 1962, and Goa became Union Territory with effect from January 20, 1961, as a result of the Constitution Twelfth Amendment Act, 1962.
Section 8 of the Act prescribes rates of tax on inter State trade.
During the relevant year, the rate of tax under the State law on the sale of liquor was 40 per cent, of the turnover.
The provisions of Sub sections 3 and 4 of Section 8 companyld number be satisfied in the case of sales to dealers in Pondicherry as the Act had number been extended to that territory during that assessment year and in the case of sales to dealers in Goa as the relevant statutory machinery had number been established.
1,15,516.95.
Out of this the value of the liquor sold to Goa after January 21, 1963, was Rs.
Aggrieved by the order of the single Judge, the respondent took up the matter in appeal to a Division Bench of the Kerala High Court.
Hence the respondent assessed the appellant at 40 per cent, on the turnover relating to sales mentioned earlier.
For the year 1962 63, its total turnover of sales to places outside the State of Kerala, the State in which the appellants registered office is situate, was for Rs.
It was selling liquor to dealers in Pondicherry, Karakkal and Goa.
A learned single Judge of the Kerala High Court quashed the assessment order on the sole ground that Goa and Pondicherry were number States.
22,622.50 and the value of the liquor sold to Pondicherry including Karakkal after August 16, 1962, was Rs.
The Act was brought into force in Goa with effect from January 21, 1963, and in Pondicherry from June 1, 1963.
S. Hegde, J. The appellant, a limited companypany, was a registered dealer under the Central Sales Tax Act, 1956 in brief the Act .
It was a manufacturer as well as a dealer in liquor.
