TMI Blog1976 (8) TMI 136X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assistant Commissioner, Commercial Taxes, and the Sales Tax Appellate Tribunal failed except with regard to the quantum of penalty. Hence the present revision petitions by the assessees. Before we refer to the arguments advanced before us, it is necessary to refer to certain provisions of the Act. Section 2(p), (q) and (r) define "taxable turnover", "total turnover" and "turnover" as follows: "2. (p) '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; (q) '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; (r) 'turnover' means the aggregate amount for which goods are bought or sold, or supplied or distributed, by a dealer either directly or through another, on his own account or on account of others whether for cash or for deferred payment or other valuable consideration, provided that the proceeds of the sale by a person of agricultural or horticultural produce, other than tea, grown within the State by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is Rs. .180 per annum. The second slab is where the total turnover is not less than twenty thousand rupees, but is less than twenty-five thousand rupees, and the tax payable by the dealer is rupees two hundred and sixty per annum. The last slab is, where the total turnover is not less than seventy thousand rupees, but is not more than seventy-five thousand rupees and the tax payable by the dealer is rupees one thousand one hundred and ninety per annum. Thus, the provisions of section 7(1) will clearly indicate two things: One is, it does not refer to taxable turnover, but takes note of only total turnover. Secondly, the tax is not fixed at a particular percentage on the turnover, but at a lump sum referable to a particular slab. Sub-section (2) of section 7 is: "Any dealer who estimates his total turnover for a year to be not more than seventy-five thousand rupees may apply to the assessing authority to be permitted to pay the tax under this section and on being so permitted he shall pay the tax due in advance during the year in monthly or prescribed instalments and for that purpose shall submit such returns in such manner as may be prescribed." According to sub-section (3) of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g authority and determine the tax payable on the turnover so determined and demand the tax after giving credit for the tax already paid under section 7 of the Act. The learned counsel for the petitioners questions this action of reopening and reassessment made by the assessing authority in exercise of the powers under section 16 of the Act. According to the learned counsel, section 16 does not authorise any such action in relation to cases covered by section 7 of the Act. We are unable to accept this argument. The sole basis of the argument of the learned counsel is that section 16 of the Act talks of turnover escaping assessment and, therefore, the word "turnover" occurring in section 16 must necessarily refer to only "taxable turnover" and that as far as section 7 is concerned, the suppressed or escaped turnover cannot be said to be taxable turnover at all. As we have pointed out already, we are unable to accept this argument. We have extracted the definitions of "taxable turnover", "total turnover" and "turnover". Section 7 talks of "total turnover" and section 16 talks of "turnover" in general without specifying whether it is "taxable turnover" or "total turnover". As a matte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned turnover exceeded the maximum limit of the total turnover fixed in section 7, the case would go out of section 7 and would attract section 3(1). Once section 3(1) is attracted, there is no dispute that section 16 will be automatically attracted. Therefore, we have no hesitation whatever in holding that section 16 is clearly applicable to the facts of the present cases and, accordingly, the reopening and reassessments were done in accordance with law. We have already indicated the fact that out of the total tax determined on the turnover redetermined pursuant to the action taken under section 16, credit has been given for the lump sum tax already paid in terms of section 7. Consequently, the petitioners cannot have any grievance on this account also. It may also be mentioned that though the said cases are not before the court, the Tribunal dealt with by the same order two other cases in which even the redetermined turnover fell within the maximum limit prescribed by section 7. Even in those cases, the assessing authority did not have recourse to section 3(1), but only applied the appropriate slab rate given in section 7 itself. The last argument attempted by the learned coun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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