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TMI Blog1967 (7) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... itioner a part of the sale price as defined in clause (o) of section 2 of the Madhya Pradesh General Sales Tax Act, 1958?" Miscellaneous Civil Case No. 61 of 1967 arises out of assessment proceedings for the period from 1st April, 1962, to 31st March, 1963. The other Miscellaneous Civil Case, namely, No. 62 of 1967, arises out of assessment proceedings for the period from 1st April, 1961, to 31st March, 1962. 3.. In the assessment proceedings for the aforesaid periods the assessee sought to exclude from its turnover the amount of sales tax recovered by it from the purchasers. The Assistant Commissioner of Sales Tax disallowed the exclusion holding that sales tax recovered by the assessee formed part of its turnover. The order of the Assis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... price" clearly shows that it includes the amount of sales tax which a person has to pay to a dealer for purchasing an article. "Sale price" means the amount payable to a dealer as valuable consideration for the sale of any goods. When an article is subject to sales tax, the tax becomes part of the price which the buyer has to pay for obtaining possession of the article. He cannot get the article unless he pays the price expressed as a certain amount plus the sales tax amount. So far as the purchaser is concerned, he pays for the goods what the seller demands, namely, price including sales tax. This is the entire valuable consideration for the sale and, therefore, the whole amount paid by the purchaser to the seller would be the sale price ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utation of "sale price" and "turnover". 6.. The matter is really concluded by the decisions of the Supreme Court in George Oakes (Private) Ltd. v. State of Madras[1961] 12 S.T.C. 476., George Oakes (Private) Ltd. v. State of Madras [1962] 13 S.T.C. 98. and State of Kerala v. N. Ramaswami Iyer and Sons[1966] 18 S.T.C. 1. In the first case while considering the question whether the sales tax charged by the dealer could be included in the turnover under the Madras General Sales Tax Act, 1939, the Supreme Court observed: "Under the definition of turnover the aggregate amount for which goods are bought or sold is taxable. This aggregate amount includes the tax as part of the price paid by the buyer. The amount goes into the common till of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his business before he parts with it. Thus, the tax becomes, for the time being, a part of the circulating capital of the tradesman, and is turned over in his business. Again, it was said that the price paid by the purchaser was not so much money for the article plus tax but a composite sum. Therefore, in calculating the total turnover, there is nothing wrong in treating the tax as part of the turnover, because 'turnover' means the amount of money which is turned over in the business." In State of Kerala v. N. Ramaswami Iyer and Sons[1966] 18 S.T.C. 1., it was pointed out that the observations made by the Supreme Court in George Oakes (Private) Ltd. v. State of Madras[1961] 12 S.T.C. 476. were not made in the context of any special statut ..... X X X X Extracts X X X X X X X X Extracts X X X X
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