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TMI Blog1961 (11) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... gh he pays tax on the tax charged by him in the price, the tax at different rates goes into different turnovers, and there is no additional tax at 6 pies on those goods on which such tax is not imposed by the Act. - C.A. Nos. 1, 2, 3, 4, 5 of 1961, - - - Dated:- 27-11-1961 - SINHA B.P., KAPUR J.L., HIDAYATULLAH M., SHAH J.C. AND MUDHOLKAR J.R. JJ R. Ganapathy Iyer, Advocate and M/s. G. Gopalakrishnan and V.J. Merchant, Advocates of M/s. Gagrat and Co., for the appellants (in all the appeals). S. Venkatakrishnan and P.D. Menon, Advocates, for the respondent. -------------------------------------------------- The Judgment of the Court was delivered by HIDAYATULLAH, J.- These five appeals on certificates grant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sales of goods- (1) Subject to the provisions of this Act (a) every dealer shall pay for each year a tax on his total turnover for such year, and (b) the tax shall be calculated at the rate of three pies for every rupee in such turnover. (2) Subject as aforesaid, the sale of any of the goods mentioned below shall be subject to a tax at the rate specified in respect thereof, at such single point in the series of sales by successive dealers as may be prescribed; and the tax shall be paid by the dealer concerned on his turnover in each year relating to such goods, and shall be in addition to the tax to which he is liable under sub-section (1) on his total turnover for the year: Description of the goods Rate of tax for every ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... remaining turnover, at 3 pies for every rupee. The inclusion of the tax in the total turnover was objected to by these tradesmen. They appealed to the Special Commercial Tax Officer, but were unsuccessful. The Sales Tax Appellate Tribunal, on further appeal, held that though the tax could be included in the total turnover, tax on the tax so included could be levied only at 3 pies for every rupee, but the additional tax at 6 pies for every rupee could not be levied. It is not necessary to refer to all the orders that were passed in the several cases, but the following extract from one of them may be read: "that when sales tax collected is included in the turnover, it will be proper to tax that amount only at the minimum rate of 3 pies in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioned, it was contended that the inclusion of the tax in the turnover would amount to the levy of a tax on tax, and that the power to levy the tax extended only to the levy of the tax on the price paid for the goods by the purchaser, which price did not include the tax paid separately. It was pointed out by this Court that the word "price" in so far as the purchaser is concerned, includes the tax also, and that in laws dealing with sales tax, turnover has, in England and America also, been held to include the tax. The reason for such inclusion is stated to be that the dealer who realises the tax does not hand it over forthwith to Government but keeps it with him, and turns it over in his business before he parts with it. Thus, the tax becom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chargeable at 6 pies for every rupee must be included. The necessary consequence is that for those goods which bear a tax of 3 pies on every rupee, the tax would be calculated on total amounts received by the tradesman including the tax at 3 pies for every rupee, and for those goods which bear the additional tax, the tax would be calculated on the total amounts received by the tradesman including the tax at 9 pies per rupee. In this way, the tradesman pays tax at the rate of 3 pies for every rupee on all the goods and an additional tax of 6 pies on every rupee of the turnover relating to certain classes of goods. But, though he pays tax on the tax charged by him in the price, the tax at different rates goes into different turnovers, and th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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