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TMI Blog1966 (7) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... he State is assessed, paid and collected." Section 9(3) reads thus: "The authorities for the time being empowered to assess, collect and enforce payment of any tax under the general sales tax law of the appropriate State shall, on behalf of the Government of India and subject to any rules made under this Act, assess, collect and enforce payment of any tax, including any penalty, payable by a dealer under this Act in the same manner as the tax on the sale or purchase of goods under the general sales tax law of the State is assessed, paid and collected; and for this purpose they may exercise all or any of the powers they have under the general sales tax law of the State; and the provisions of such law, including provisions relating to ret ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat by virtue of the provision in section 9(3), which we have already read, we must go through the whole process as envisaged by the General Sales Tax Act, 1125, and the rules framed thereunder to determine the net turnover taxable under that statute and then apply the rate provided by section 8(1) of the Act and assess the petitioner. On the other hand, on behalf of the department the learned counsel has stressed that the Central Act itself has provided a machinery for the determination of the turnover and since there is such a machinery provided by the Act and because of the provision in section 9(3) of the Act, that the assessment in the manner provided by the general sales tax law of the State can only be subject to the rules made under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ery of the goods: Provided that satisfactory evidence of such return of goods and such payment of the amount by way of refund in cash or adjustment in accounts, is produced before the prescribed authority." and contended that these provide a complete machinery for the fixation of the turnover for the purposes of the Central Act and there being thus a specific method provided by the Act and rules framed thereunder, there can be no scope for relying on the provisions for computation of turnover contained in the general sales tax law of the State or the rules framed thereunder. In this contention counsel is supported by more than one decision. The Madras High Court in the decision, S. Mariappa Nadar and Others v. The State of Madras[1962] 13 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as High Court in S. Mariappa Nadar and Others v. The State of Madras[1962] 13 S.T.C. 371., of this Court in the same volume at page 927 (Parvathi Mills (Private) Ltd. v. The State of Kerala[1962] 13 S.T.C. 927. and of the Mysore High Court in State of Mysore and Another v. Mysore Paper Mills Ltd.[1964] 15 S.T.C. 176. , all have been referred to by his Lordship Justice J.C. Shah in the dissenting judgment in The State of Mysore v. Yaddalam Lakshminarasimhiah Setty and Sons[1965] 16 S.T.C. 231. At least by implication, though not expressly, the views expressed in these decisions have been negatived by the majority judgment. Their Lordships observed in the majority judgment: "There has been considerable difference of opinion among the High C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Second Schedule by the first or the earliest of successive dealers in the State, who is liable to tax under that section, a tax at the rate specified in the corresponding entry of column (3) of the said Schedule on the turnover of sales of such dealer in each year relating to such goods. When section 9 (1) says that under the Central Act tax shall be levied in the same manner as the tax on the sale or purchase of goods under the general sales tax law of the State is assessed, paid and collected, it is reasonable to hold that the expression 'levied' in section 9 (1) of the Central Act refers to the expression 'levied' in section 5 (3) (a) of the State Act. There is no reason why the Central Act made a departure in the manner of levy of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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