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TMI Blog1998 (9) TMI 615X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act. The assessing authority levied TOT at 1.75 per cent on the purchase turnover of raw bathies from the unregistered dealers within the State of Karnataka in a sum of Rs. 30,00,000. Aggrieved by the order of assessment, petitioner filed an appeal before the Joint Commissioner of Commercial Taxes (Appeals) which was dismissed. Further appeal filed before the Tribunal met the same fate. 4.. Act provides for levy of sales tax. The charging section is 5B. Section 6 provides for levy of purchase tax on a dealer who in the course of his business purchases any taxable goods on which no tax under section 5 is leviable on the sale price of such goods. In addition to the sales tax and purchase tax, section 6B provides for the levy of TOT depending upon the total turnover in an year. In case, total turnover exceeds a particular amount which has varied from time to time (at the relevant time it was Rs. 10,00,000), then, the dealer is required to pay TOT as provided in this section whether or not the whole or any portion of such turnover is liable to tax under any provision of the Act. Section 8A empowers the Government to make exemption/or reduction in rate; in respect of tax payable o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order to appreciate the points raised, it would be useful to refer to the relevant provisions of the statute. In the definition section 2, taxable turnover , total turnover and turnover have been defined in the subclauses (u-1), (u-2) and (v) and the same reads as under: (u-1) taxable turnover means the turnover on which a dealer shall be liable to pay tax as determined after making such deductions from his total turnover and in such manner as may be prescribed, but shall not include the turnover of purchase or sale in the course of inter-State trade or commerce or in the course of export of the goods out of the territory of India or in the course of import of the goods into the territory of India; (u-2) total turnover means 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, including the turnover of purchase or sale in the course of inter-State trade or commerce or in the course of export of the goods out of the territory of India or in the course of import of the goods into the territory of India; (v) turnover means the aggregate amount for which goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pals who are agriculturists; (ix) all amounts allowed as discount, provided that such discount is allowed in accordance with the regular practice of the dealer or is in accordance with the terms of a contract or agreement entered into in a particular case and provided also that the accounts show that the purchaser has paid only the sum originally charged less discount; (x)(a) all amounts allowed to purchase in respect of goods returned by them to the dealer when the goods are taxable on sales provided that the goods were returned within a period of six months from the date of delivery of the goods and the accounts show the date on which the goods were returned and the date on which and the amount for which refund was made; (b) all amounts received from the sellers in respect of goods returned to them by the dealer, when the goods are taxable on the purchase value provided that the goods were returned within a period of six months from the date of delivery of the goods and the accounts show the date on which the goods were returned and the date on which and the amount for which refund was received; (xi) such amounts towards labour charges and other like charges not involvi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of this Court in the cases of B.P. Automobiles [1984] 55 STC 93 and Shantilal Brothers [1985] 59 STC 178, the expression total turnover as used under section 6B(1) has to be necessarily read in terms of section 2(u-2) and not on computation thereof as provided under rule 6 of the Rules. Even otherwise it is well-settled that if the rules are found to be inconsistent with the provisions of the Act, the same have to yield to the latter, and the provisions contained under the Act will have an overriding effect. The total turnover as defined under section 2(u-2) of the Act, as noticed above, is not dependent on any mode of computation to be provided by the rule-making authority. On a proper construction it can well be held that rule 6 of the Rules had to be engrafted in order to work out taxable turnover as defined under section 2(u-1) of the Act and the total turnover as worked out therein is only a step in-aid for ultimate computation of taxable turnover. The expression the total turnover of a dealer, for the purpose of the Act, shall be the aggregate as used in rule 6 can by no rule of construction be held as intending to override the definition of total turnover as defi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al turnover and not the turnover and therefore, we have to go to the definition of total turnover as given in section 2(u-2) for the purpose of section 6B and not to the turnover as given in section 2(v). Total turnover as defined in section 2(u-2) in substance means the aggregate turnover in all goods of purchases and sales made by an assessee in the course of inter-State trade or commerce or in the course of export of goods outside the territory of India or in the course of import of goods into the territory of India whether or not, the whole or any portion of such turnover is liable to tax . If this be so, then the turnover of purchase or sale irrespective of whether the whole or any portion of such turnover is liable to tax has to be clubbed for the purpose of levy of TOT under section 6-B. The goods which were exempt from payment of purchase tax leviable under section 6 because of the notification issued under section 8A have to be aggregated to the total turnover of sales while determining the levy of turnover tax under section 6B. 13.. For the reasons stated above, we do not find any merit in this revision petition and dismiss the same with no order as to costs ..... 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