1962 (12) TMI 39

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..... in their gross turnover in order to determine their liability to tax." Under section 3 of the Sales Tax Act as it was in force during the assessment years under consideration a dealer was under an obligation to pay on turnover in each assessment year a tax at a certain rate, provided that a dealer whose turnover in the previous year was less than Rs. 12,000 was exempt from the liability for the assessment year. "Dealer" means a person carrying on the business of buying or selling and supplying goods in Uttar Pradesh whether for commission, remuneration or otherwise. "Sale" means transfer of property in goods, "turnover" means the aggregate of the proceeds of sale by a dealer, "assessment year" means the twelve months ending on March 31 an .....

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..... rmine whether the dealer is liable to pay sales tax or not, once he is found liable to pay the sales tax, proceeds of sale of certain goods may have to be deducted from the turnover and different rates may have to be applied to proceeds of sale of different goods. Under rule 8 of the rules made by the State Government a dealer's liability to pay tax is to be determined on the basis of his gross turnover and the sales tax under section 3 is to be computed on the net turnover which is determined after deducting from the gross turnover the amounts mentioned in rule 44. It would be clear from the above resume of the law that liability to pay tax, or the accrual of liability to pay tax, or, in short, taxability is one matter and the quantum of .....

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..... cted wisely or even reasonably in doing so. The sole question before us is whether it has done so, and I have no doubt that it must be answered in the affirmative. When it did not intend to include a certain matter in a turnover, even though according to the definition it would be included in it, it has made an express provision. Whatever turnover of the previous year is worked out in accordance with the definition and the provisions laying down that certain matters will not be included in the turnover, is the turnover referred to in section 3, proviso (2), and whether a dealer is liable to pay tax or not depends upon this amount. There are other provisions dealing with how a dealer found liable is to be assessed to the tax. Even though the .....

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