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TMI Blog2001 (6) TMI 804X X X X Extracts X X X X X X X X Extracts X X X X ..... .R.C. No. 34 of 1993 filed return in form (CST) VI for the assessment year 1984-85 reporting a net turnover of Rs. 11,85,471.50. The Commercial Tax Officer determined the net turnover at Rs. 1,38,63,780 and subjected the same to tax at different rates. In the first case, i.e., T.R.C. No. 26 of 1993 the assessee had claimed exemption on a turnover of Rs. 7,742 which represented yarn cess collection. In the second case the assessee had claimed exemption on a turnover of Rs. 3,606 which represented yarn cess collection. The assessee had claimed exemption on turnover on the ground that yarn cess collected by it from the purchasers of the cotton yarn does not form part of taxable turnover as it was collected under section 5-A(1) of the Textiles ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned counsel for the parties but we feel that the matter is no longer res integra and is already covered by a judgment of the Supreme Court in McDowell Company Limited v. Commercial Tax Officer [1985] 59 STC 277. In order to apply the judgment of the Supreme Court referred to above certain provisions of the Sales Tax Act and Textiles Committees Act are taken note of. The committee is established under section 3 of the Textiles Committee Act, 1963. Section 4 of the Act gives functions of the Committee which includes, "undertake, assist and encourage, scientific, technological and economic research in textile industry and textile machinery". Section 5 gives powers of the Committee and section 5-A imposes cess on textiles and textile mach ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (b) every manufacturer shall furnish to the committee a return, not later than fifteen days after the expiry of the period to which the return relates, specifying the total quantity of textiles or textile machinery manufactured by him during the said period and such other particulars as may be prescribed. (6) If any manufacturer fails to furnish the return referred to in sub-section (5) within the time specified therein, or furnishes a return which the committee has reason to believe is incorrect or defective, the committee may assess the amount of the duty of excise in such manner as may be prescribed. (7) Any manufacturer aggrieved by an assessment made under this section may appeal to the Tribunal, constituted under section 5-B for c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is less; (ii) the total amount of consideration for the sale or purchase of goods excluding tax due under the Act as may be determined by the assessing authority, if the bill of sale does not set out correctly the amount for which the goods are sold; or (iii) if there is no bill of sale, the total amount charged as the consideration for the sale or purchase of goods by a dealer either directly or through another, on his own account or on account of others, whether such consideration be cash, deferred payment or any other thing of value and shall include- (a) the value of any goods as determined by the assessing authority,- (i) to have been used or supplied by the dealer in the course of execution of the works contract; (ii) to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and any amount refunded in respect of articles returned by customers shall not be included in the turnover; (ii) where for accommodating a particular customer, a dealer obtains goods from another dealer and immediately disposes of the same to the said customer the sale in respect of such goods shall be included in the turnover of the latter dealer, but not in that of the former;" 5.. The Supreme Court was considering a similar matter in McDowell Company Limited v. Commercial Tax Officer [1985] 59 STC 277 where the question decided was, whether the excise duty paid by the appellants was part of turnover or not? This case was decided by a Constitutional Bench of the Supreme Court. Under the Andhra Pradesh Excise Act, 1968 buyers of Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esh notice proposing to include the excise duty paid in the turnover for the relevant year. Thereafter the assessee again moved the High Court. The High Court dismissed the writ petition and the matter went again before the Supreme Court. In this judgment McDowell Company Limited v. Commercial Tax Officer [1985] 59 STC 277 the Supreme Court was clearly of the view that the excise duty was part of the turnover. 7.. In the present case it is on record that the duty paid under Textiles Committee Act has been passed on to the consumers and in terms of section 2(1)(s) of the Sales Tax Act the duty paid is part of the turnover. Therefore, following the judgment of the Supreme Court, we hold that the cess paid under the Textiles Committee Act ..... X X X X Extracts X X X X X X X X Extracts X X X X
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