TMI Blog1968 (8) TMI 121X X X X Extracts X X X X X X X X Extracts X X X X ..... -------------------------- The judgment of the court was delivered by GROVER, J.- This is an appeal by certificate from a judgment of the Kerala High Court in a tax revision petition. The assessee had been registered as dealer under the Central Sales Tax Act, 1956 (74 of 1956), hereinafter called the Act. In respect of the year 1960-61 the assessee claimed a deduction on account of excise duty paid amounting to Rs. 2,17,744.20. The assessee also sought a deduction of commission amounting to Rs. 50,047.66. It further claimed that calculation of Central sales tax at 7% on the turnover of Rs, 27,382.01 was not correct. The departmental authorities as also the Appellate Tribunal decided against the assessee on all the aforesaid ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he sale price received and receivable by any dealer liable to tax under the Act in respect of sales of any goods in the course of inter-State trade or commerce made during any prescribed period and determined in the prescribed manner. It may be mentioned that rule 11(2) was as substituted by a notification dated June 2, 1961, and gives the amount which shall be deducted from the aggregate of sale price but even that does not include the deduction on account of payment of excise duty. Further the substituted sub-rule (2) is not relevant for our purposes as the controversy, in the present case, relates to a period prior to June 2, 1961. The contention of the learned Attorney-General is that the provisions of the Act were admittedly applicab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s under the general sales tax law of the State is assessed, paid and collected; and for this purpose they may exercise all or any of the powers they have under the general sales tax law of the State; and the provisions of such law, including provisions relating to returns, appeals, reviews, revisions, references, penalties and compounding of offences, shall apply accordingly." The question which came up for decision in Yaddalam L. Setty's case [1965] 16 S.T.C. 231., was the true import and meaning of the expression "in the same manner" in section 9(2) as it stood before the enactment of Amending Act 31 of 1958, and which was in the same terms as sub-section (3) of section 9. This is what was said in the majority judgment in that case: " ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the State Act". It is common ground that the assessee was entitled to deduction on account of payment of excise duty etc. under rule 7 of the General Sales Tax Rules, 1950. By virtue of the above decision of this court rule 7 would become applicable because under sub-sections (1) and (3) of section 9 of the Act the tax shall be levied and collected in the same manner as the tax on the sale or purchase of goods under the general sales tax law of the State is so paid and collected. The High Court while referring to the judgment of this court in Yaddalam L. Setty's case [1965] 16 S.T.C. 231., understood the observations in the majority judgment to uphold the contention raised on behalf of the assessee that in all respects the tax must be lev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich may arise if we follow the view expressed in the majority judgment; for instance, it is pointed out that if in the rules it is expressly provided that no deduction would be permissible on account of payment of excise duty whereas such a deduction is allowable under the rules framed under the general sales tax law of the State, a question would immediately arise which enactment or set of rules is to prevail. If and when such a situation arises, the matter can be considered but for the purpose of the present case we are satisfied that the decision of the majority of this court in the afore- said case would govern the determination of the question which was resolved in favour of the assessee by the High Court. The appeal consequently ..... X X X X Extracts X X X X X X X X Extracts X X X X
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