1957 (4) TMI 46 - SC - VAT and Sales Tax

Whether in the calculation of net turnover appellant is entitled to include the total value of the oil sold by him, viz., ₹ 6,76,719-0-11, irrespective of the fact whether these sales were effected inside the State or outside the State and deduct therefrom the total value of copra purchased by him from which the whole quantity of oil sold by him was manufactured, viz., ₹ 7,16,048-1-4?

Held that:- The non-obstante provision contained in section 26 of the Act has the effect of taking these transactions out of the purview of the Act with the result that the dealer is not required nor is he entitled to include them in the calculations of his turnover liable to tax thereunder.

Such inclusion, however, for the purposes aforesaid would not affect the non-liability of these transactions to levy or imposition of sales tax by virtue of the provisions of Article 286 of the Constitution and the corresponding provision enacted in the Act, as above.

We are, therefore, of opinion that the conclusion reached by the High Court was correct; the calculations of the net turnover made by the Sales Tax Authorities were also correct; and this appeal must stand dismissed