Breif Issue :

Fact & Issues Involved :

The appellant, used to purchase Cotton yarn and sell it to registered dealers, unregistered dealers and consumers. He submitted his return of turnover under the State Act for the assessment year 1968-69 and claimed exemption in respect of the turnover of sales of cotton thread on the ground that it was an exempted item under Entry 21 of the Second Schedule.

The Sales Tax Officer held that the sales were liable to tax as the same were affected in respect of cotton yarn. The appellant ultimately went in revision to the Financial Commissioner who proceeding on the basis that the sales were in respect of cotton yarn, which was a declared item under s.14 of the Central Sales Tax Act allowed the revision petition holding that they could not be subjected to sales tax because one of the conditions prescribed by s.15 of that Act had not been complied with, that is to say, the law had omitted to prescribe the single point at which the levy could alone be imposed.

Aggrieved by the order of the Financial Commissioner, the Revenue filed a writ petition in the High Court which, relying on the construction placed by it on sub-clause (ii)of cl.(a) of s.5 in Fitwell Engineers Financial Commissioner Delhi Admn (1975) 35 S.T.C. 66, allowed the petition holding that the single point in a series of sales is the sale made by the last registered dealer among successive dealers when he sold the goods to an unauthorized dealer or consumer.