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2019 (3) TMI 1483 - SC - VAT and Sales TaxApplicability of the turnover tax - scope of total turnover - inclusion of turnover which is not liable to tax - Section 6B (1) of Karnataka Sales Tax Act, 1957 - main thrust of the submission of Mr. Mohit Chaudhary, learned counsel for the appellant is that Courts below have manifestly erred in appreciating that the ‘total turnover’ as defined under Section 6B (1) for the purpose of levy turnover tax can in no event include the ‘turnover’ with reference to which the State has no power to levy tax under the constitutional scheme and the submission proceeds that the levy of tax under Section 6B can be on the ‘taxable turnover’ alone. Held that:- In the instant scheme of the Act of which reference has been made in detail, the expression ‘total turnover’ has been referred to for the purpose of identification/classification of dealers for prescribing various rates/slabs of tax leviable to the dealer and read with first and second proviso to Section 6B( 1), this makes the intention of the legislature clear and unambiguous that except the deductions provided under the first proviso to Section 6B( 1) nothing else can be deducted from the total turnover as defined under Section 2(u2) for the purpose of levy of turnover tax under Section 6B of the Act - The submission of learned counsel for the appellant that the ‘total turnover’ in Section 6B( 1) is to be read as ‘taxable turnover’ and the determination of the rate of the turnover tax is to be ascertained on the ‘taxable turnover’ on the face of it is unsustainable and deserves outright rejection. The appeals are without substance and the same are dismissed.
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