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TMI Blog1991 (6) TMI 232X X X X Extracts X X X X X X X X Extracts X X X X ..... la General Sales Tax Act. But, for the purpose of assessment under the Kerala Surcharge on Taxes Act, 1957, the assessing authority included the sales tax collections also in the turnover fixed for the assessment under the Kerala General Sales Tax Act. Thus, the total turnover for the purpose of surcharge assessment exceeded Rs. 10,00,000. Under section 3 of the Kerala Surcharge on Taxes Act, surcharge was levied at 8 per cent. The assessee pleaded that the sales tax collected should not be included in the turnover for the purpose of assessment under the Kerala Surcharge on Taxes Act. This plea was negatived by the assessing authority and by the Appellate Assistant Commissioner. But, in second appeal, the Sales Tax Appellate Tribunal, by re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eight per centum, of the tax payable for that year, and the provisions of the Kerala General Sales Tax Act, 1963, shall apply in relation to the said surcharge as they apply in relation to the tax payable under the said Act: .... .... .... (2) Notwithstanding anything contained in sub-section (1) of section 22 of the Kerala General Sales Tax Act, 1963, no dealer referred to in sub-section (1) shall be entitled to collect the surcharge payable under the said sub-section." 3.. Kerala Surcharge on Taxes Act has not defined the word "turnover". But, in the Kerala General Sales Tax Act, the words "turnover", "total turnover" and "taxable turnover" are defined [sections 2(xxvii), 2(xxvi) and 2(xxv)]. The "turnover" means the aggregate am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uestion is, whether the same consideration will apply in making an assessment under the Kerala Surcharge on Taxes Act, 1957. 4.. We are of the view, that in the absence of provisions similar to section 2(xxv) and rule 9(1) of the Kerala General Sales Tax Act and the Rules in the Kerala Surcharge on Taxes Act, 1957, the entire consideration received for the sale by a dealer should be included in the turnover. So far as the purchaser is concerned, he pays for the goods what the seller demands, i.e., price even though it may include tax. The price of the goods plus tax and other amounts collected form the consideration for the sale. The entire amount received by way of consideration for the sale inclusive of sales tax is available for the se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r v. Spencer Co. [1975] 36 STC 188. There is a later decision of a Bench, consisting of two Judges in Central Wines v. Special Commercial Tax Officer [1987] 65 STC 48, wherein the earlier decisions in George Oakes (Private) Ltd. case [1961] 12 STC 476 and Anand Swarup Mahesh Kumar's case [1980] 46 STC 477 have been adverted to. Under the Kerala General Sales Tax Act, there is no statutory obligation or duty to collect the sales tax payable by the dealer from his customers. The dealer is only enabled to pass on the tax to the customer. The amount so collected forms part of the purchase price. It is because of the specific provision in section 5 of the Act read with rule 9(1) of the Kerala General Sales Tax Rules, the tax so collected is ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... did not form part of his turnover. The said decision has been explained in the later decision, referred to hereinaboveCentral Wines v. Special Commercial Tax Officer [1987] 65 STC 48 (SC). 6.. In view of the Constitution Bench decisions of the Supreme Court George Oakes (Private) Ltd. v. State of Madras [1961] 12 STC 476 (SC), State of Kerala v. N. Ramaswami Iyer and Sons [1966] 18 STC 1 and the subsequent decisions explaining the above decisions-Joint Commercial Tax Officer v. Spencer Co. [1975] 36 STC 188 (SC), Central Wines v. Special Commercial Tax Officer [1987] 65 STC 48 (SC), we have no hesitation to hold that the sales tax collected by the assessee will form part of his turnover for the purpose of assessment under the Kerala Sur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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