9911796707
TMI Blog1963 (4) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... rates of tax in the case of certain assessees whose turnover exceeds Rs. 10,000 but falls short of Rs. 50,000 during the year. The Tribunal rejected this contention holding that section 7 would not apply to the case of this assessee. It is this order of the Tribunal the correctness of which is canvassed in the present tax revision case. It is not disputed that the assessee is a dealer registered under the appropriate section of the Central Sales Tax Act. Section 5 of the Madras General Sales Tax Act is a special provision enacted to deal with such assessees. It reads: "Notwithstanding anything contained in sub-section (1) of section 3, every dealer registered under sub-section (3) of section 7 of the Central Sales Tax Act, 1956, shall, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hose turnover does not exceed Rs. 50,000 it is his claim that section 7 would apply; and he, having exercised his option, is entitled to be taxed only at the compounded rates mentioned in section 7. It seems to us that this contention cannot prevail. Section 3 of the Act is the main charging section. It deals with every dealer whose total turnover for a year is not less than Rs. 10,000 and fixes the rate of tax at 2 per cent. of the taxable turnover. The first proviso thereto reduces the rate to 1 per cent. in the case of certain goods. When we turn to section 7 it deals with the case of dealers whose turnover is not less than Rs. 10,000 but not more than Rs. 50,000. Such a dealer, who would otherwise be liable to pay tax under section 3(1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder section 5 itself, and the reference to section 3 in that part of the section which deals with the rates of tax is only intended to refer to the goods in respect of which different rates of tax are levied. Though the rates specified in section 5 are no doubt identical with the rates set down in section 3, the tax in the case of such dealers is imposed by section 5, which is the charging section. The argument of the learned counsel that the non obstante clause confers a right upon the assessee, even though he is registered under the Central Sales Tax Act, to the benefit of taxation at the compounded rates under section 7 does not conform to the pattern of the taxation which sections 3, 5 and 7 lay down. We are therefore satisfied that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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