9911796707
TMI Blog1975 (3) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... x Officer added 25 per cent of the taxable turnover returned to cover defects and probable omissions. On this head the amount added thus came to Rs. 9,214.17. The assessing authority also was of the view that due to wrong classification or wrong inclusion of taxable turnovers in the second or subsequent sales of declared goods, a turnover of Rs. 1,238.46 is also to be included in the taxable turnover. This was arrived at on the basis that out of the turnover of Rs. 4,167.74 shown as second or subsequent sales of declared goods, only a turnover of Rs. 2,929.28 was not liable to tax as second or subsequent sales and the balance of Rs. 1,238.46 represented taxable turnover. Thus, the taxable turnover was determined by the assessing authority a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or. When he reduced the sum of Rs. 1,238.46 to Rs. 17.13 as taxable on the ground of wrong inclusion, necessarily the turnover on second sales of declared goods would swell correspondingly, but the Appellate Assistant Commissioner overlooked this aspect, Therefore, instead of determining the second sales on declared goods as Rs. 4,167.74Rs. 17.13=Rs. 4,150.61, he took the same figure of Rs. 2,929.28 taken by the assessing authority. The result was the total turnover for the purpose of section 7 was reduced to below Rs. 50,000 limit. It may be mentioned that there is no dispute in this case and it is also well-settled that for the purpose of determining the total turnover under section 7, the turnover relating to inter-State sales is to be i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 15(a) of the Central Sales Tax Act. The learned counsel in this connection also referred to rule 6(e) as supporting his argument. Before dealing with this argument, it is necessary to set out the relevant provisions in the Tamil Nadu General Sales Tax Act. Section 2, which is the definition section, defines "turnover" as meaning the aggregate amount for which the goods are bought or sold. The other portions in the definition are not material for the purpose of this case. "Total turnover" is defined as meaning the aggregate turnover in all goods of a dealer at all places of business in the State whether or not the whole or any portion of such turnover is liable to tax. "Taxable turnover" is defined as meaning the turnover on which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otal turnover means something other than what is contained in the definition of that word in section 2. But is there anything in the context which requires any restricted meaning to be given to the words "total turnover"? It is not in dispute and could not be disputed that even second sales of goods which are liable for single point levy under the First Schedule are liable to be included in the total turnover under section 7 though such transactions were not liable to tax under section 3(1). Section 14 of the Central Sales Tax Act is only another list of such goods which could be subjected only to a single point tax and not to multiple taxation. Therefore, inherently there is no difference between the declared goods and the other goods refe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cted to a multiple taxation. The matter is not res integra. It is covered by authority and against the petitioner's contention. In Sivamurugan v. Assistant Commercial Tax Officer[1970] 26 S.T.C. 68., this court had to consider the scope of section 7, vis-a-vis, sections 3(1) and 5 of the Act. It was held that the mere fact that the total turnover of an assessee includes a turnover which is not liable to taxation it cannot be stated that the entire turnover had been subjected to tax. What is taxed by applying the provisions of section 7 is what could have been taxed under section 3(1) and not those turnovers which were not liable to be taxed either by reason of its being second sales or otherwise. This decision was reaffirmed by a later deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with section 15(a). The same view was expressed by the Supreme Court in Devi Dass Gopal Krishnan v. State of Punjab[1967] 20 S.T.C. 430 (S.C.). It should also be pointed out that section 15(a) dealt with the rate of tax and the point of taxation and did not deal with liability of such turnover being included in determining the total turnover of an assessee. Therefore, neither the provisions of section 15(a) or article 286(3) of the Constitution were contravened nor the legislature had acted without jurisdiction. Further, the whole scheme of section 7 is to give the benefit of compounding rate to small traders. For ascertaining the total turnover of such person, therefore, we do not see any justification why such second sales of declared go ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
