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TMI Blog1978 (2) TMI 199X X X X Extracts X X X X X X X X Extracts X X X X ..... the gross turnover and that the estimate of the turnover of molasses was highly excessive and further that the turnover being below the minimum taxable limit, no sales tax should have been levied. The Assistant Commissioner did not accept the first contention. On the second contention, of course, he reduced the turnover of molasses to Rs. 13,000. Being aggrieved, the assessee moved a revision application before the Additional Judge (Revisions), Sales Tax, Bareilly, on both the points. The learned revising authority estimated the sales of molasses at Rs. 12,000 and, as for the sales of sugar, held that the same could not be added to the turnover of molasses, relying on a decision of this Court in Commissioner of Sales Tax, U.P. v. Mithulal Murlidhar1970 U.P.T.C. 450. Accordingly, the revision application was allowed in full. At the instance of the Commissioner of Sales Tax, U.P., the Judge (Revisions), Sales Tax, has referred the case and invited the opinion of this Court on the following question: "Whether, on the facts and in the circumstances of the case, the Additional Judge (Revisions), Sales Tax, was legally justified to hold that the sales of the khandsari sugar, on which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eater by a dealer, either directly or through another, on his account or on account of others, whether for cash or deferred payment or other valuable consideration." (The provisos and the explanations to this definition are not necessary for our purpose.) Section 4(1)(a) may also be noted which provides for exemption from tax. It is as under: "(1) No tax shall be payable on (a) the sale of water, milk, salt, newspapers and motor spirit as defined in the U.P. Sales of Motor Spirit (Taxation) Act, 1939, and of any other goods which the State Government may, by notification, in the official Gazette, exempt." We were informed by the learned standing counsel that by Notification No. 1615/X-902(9)-52 dated 13th August, 1959, with effect from 1st March, 1959, no tax was to be levied on khandsari sugar produced after that date provided additional excise duty was paid on such sugar. On an analysis of the above provisions, it would appear that, since additional excise duty had been paid on the aforesaid sales of sugar, no sales tax was payable. It is not disputed that these sales had been made through commission agents and had been included in their turnover. The question that, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the net turnover. In Commissioner of Sales Tax v. Allied Chemicals1960 A.L.J. 44., the assessee, a dealer in chemicals, had, for the assessment year 1956-57, disclosed sales within Uttar Pradesh at Rs. 7,642 and odd and sales made outside Uttar Pradesh at Rs. 15,591 and odd. As for sales made outside Uttar Pradesh, it was claimed that, since they fell outside the purview of the U.P. Sales Tax Act, they could not be taken into consideration for any purpose whatsoever under the Act and, thus, if those sales were not included, the turnover of the remaining sales being below the prescribed minimum turnover liable to tax, the assessee would not be liable to tax at all. The question, on these facts, which came up for consideration before the Full Bench was whether the sales made outside Uttar Pradesh should be included in the turnover for the purpose of determining whether the dealer is liable to tax under the Act. Because of section 27 of the Act, according to which, no matter what any provision of the Act may say, no liability to tax can be visited on sales made outside Uttar Pradesh, the view taken was that those sales could not be taken into account at all in the assessment proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mission was not accepted and it was held, after referring to the charging section and the definitions of "dealer" and "turnover": "It follows, therefore, that in order to determine the gross turnover of a dealer, all sales effected by him will have to be aggregated even though the tax would be levied only upon the net turnover, which means the turnover liable to tax, so that a part of the turnover, which is exempted by any of the provisions of the Act, shall have to be excluded from the levy of the tax." In that case, the decision of the Full Bench in the Allied Chemicals[1969] 23 S.T.C. 165 (F.B.); 1969 A.L.J. 33 (F.B). as also of a Division Bench decision of this Court in Commissioner of Sales Tax, U.P., Lucknow v. Balbir Singh and Co.(3) were followed. In the Balbir Singh's case(3), it was held that the sales made by the assessee as a commission agent could be included in the assessee's gross turnover even though such sales were not subject to tax in his hands. There is another Division Bench decision of this Court in Commissioner of Sales Tax, U.P. v. Mithulal Murlidhar1970 U.P.T.C. 450., which has been referred to and relied upon by the learned revising authority. In that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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