TMI Blog1955 (3) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... turnover a sum of Rs. 58,699-3-9 representing the taxes collected by the respondent on the goods sold by him. An appeal was preferred by the assessee against the order including the sales tax collected by him in his turnover for the year. But this appeal was rejected. A further appeal to the Sales Tax Appellate Tribunal resulted in the exclusion of this sum from his turnover. It is this order of the Appellate Tribunal that is impugned by the State Government in this revision case. It is urged in support of this case that the assessee is not entitled to deduct anything from the gross turnover except those items that are specifically mentioned under rule 5(1)(a) to (k), and that the sales tax collected by the assessee is not included in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is struck between the parties. As such it cannot be a part of the pur- chase price. Therefore, tax on sale is outside the, consideration paid by the consumer for the goods purchased by him. The seller is authorised to collect the tax under the statute and required to pay it over to the Government. Although the main body of the Act does not contain any provision to enable the seller to pass on the tax to the consumer, sub-rule (7) of rule 5 of the Turnover and Assessment Rules confers such an authority on the seller. In our opinion, he acts as an agent of the assessing authority in collecting the tax, and he is under an obligation to make it over to the Government, and no part of this money belongs to him. Any default in this regard invol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant provisions in the Act. This point is also covered by authority. In Deputy Commis- sioner of Commercial Taxes, Coimbatore v. Messrs. M. Krishnaswami Mudaliar and Sons(1), a Bench of the Madras High Court held that tax (1) [1954] 5 S.T.C. 88; (1954) 2 M.L.J. 151. collected by the seller under sub-rule (7) of rule 5 of the Turnover and, Assessment Rules is not liable to be taxed again, and cannot therefore be included in the net turnover of the assessee. With respect we are in agreement with the principle laid down there. In our opinion the order under revision is correct and has to be affirmed. In the result, the revision case is dismissed with costs, only Advocate's fee Rs. 125. We have taken the view in T.R.C. No. 214 of 1953 (reporte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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