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TMI Blog1983 (9) TMI 267X X X X Extracts X X X X X X X X Extracts X X X X ..... additional tax collected by it from the purchasers amounting to Rs. 4,72,742.31 was not included. The assessing officer held that the amount collected by way of additional tax by the petitioner-company from the purchasers formed part of the gross turnover of the company. It was also held that the amount of additional tax was not deductible from the taxable turnover of the petitioner for the purpose of computing the general sales tax, special sales tax and additional tax payable by the petitioner. In respect of the amount of additional sales tax collected by the petitioner, as mentioned above, the Assessing Officer fixed the amount of additional sales tax collected by the petitioner at a slightly higher figure of Rs. 4,77,517.48. The order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnover, as the State Government may, from time to time, by notification in the Official Gazette, fix." There is a proviso thereto which need not be quoted. I would now quote the relevant portion of section 7. It states: "For the purposes of this Act, the 'taxable turnover' of a dealer shall be(1) in respect of the general sales tax, that part of the gross turnover which remains after deducting therefrom- (a) sale prices on account of sales exempted under section 4; and (b) amount of sales tax actually collected as such, if any, along with the sale prices received or receivable in respect of sales of goods; (2) in respect of special sales tax, that part of the gross turnover which remains after deducting therefrom- (a)(i) sale pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the meaning of the Act. By virtue of section 20A(2), which has been quoted, it is implicit that a dealer may recover from the purchasers, in addition to the value of the goods, an amount or amounts which he will have to pay as tax on that value: see Ashoka Marketing Ltd. v. State of Bihar [1970] 26 STC 254 at 260 (SC); AIR 1971 SC 946 at 951. Consequently, in my view, he is entitled to collect from the purchasers additional tax which is payable by him under section 3B of the Act. 7.. A perusal of section 7 of the Act makes it clear that for the purpose of computing taxable turnover, in respect of general sales tax as also special sales tax, the amount of sales tax actually collected as such is deductible. Additional tax is also a tax w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ithin the meaning of section 2(k) of the Act includes the amount of sales tax, including additional tax, realised by a dealer from the customers. This is clear from the persual of section 7 of the Act, relevant extracts wherefrom have already been quoted. It would be observed that in computing the taxable turnover the section requires deduction of sales tax collected as such from the gross turnover. If gross turnover did not include the sales tax collected by a dealer, there would be no meaning in enacting that the same should be excluded from the taxable turnover. Whatever be the position, so far as tax laws of other States are concerned, I am of the view that the scheme of the Bihar Sales Tax Act indicates that gross turnover includes the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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