TMI Blog1960 (1) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... ion (4) of section 3 provides that for the purposes of that section and the other provisions of the Act, turnover shall be determined in accordance with such rules as may be prescribed. Under sub-section (5) of section 3 the buyer or the seller but not both, as determined by such rules as may be prescribed, shall be taxed in respect of the same transaction of sale and where a dealer has been taxed in respect of the purchase of any goods in accordance with the rules prescribed, he shall not be taxed again in respect of any sale of such goods effected by him. 3.. The expressions "turnover" and "prescribed" are defined in section 2 of the Act. The definition of "turnover" is: "'turnover' means the aggregate amount for which goods are either ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s with exemptions and deductions of tax in certain cases. According to sub-section (vii) of that section subject to such restrictions and conditions as may be prescribed "the sale of goods specified in column (2) of Schedule I shall be liable to tax under section 3, sub-section (1), only at such single point in the series of the sales by successive dealers as may be specified by the Government by notification in the Gazette." A notification under this provision dated 28th September, 1957, was published in the Kerala Gazette Extraordinary, dated 30th September, 1957. The relevant portion of the notification reads as follows:"In exercise of the powers conferred by clause (vii) of section 5 of the General Sales Tax Act (Act XI of 1125) the Gov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rred upon the Government by section 5(vii) of Act XI of 1125. Section 5(vii) empowers the Government to issue notification only in respect of sale of goods at such single point in the several sales by successive dealers and not at any point of purchase." We are inclined to accept this contention. 9.. It is common ground that the answer to the controversy depends on the meaning of the words "at such single point in the series of the sales by successive dealers." According to the petitioner the "single point" that can be specified under section 5(vii) in a series of sales is the first sale or the last sale or any of the sales in-between. According to the Department the specification can and should go further and indicate also the person who ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which says that for the purpose of that section and other provisions of (1)[1955] 6 S.T.C. 446; A.I.R. 1955 S.C. 661. the Act the turnover shall be determined "in accordance with such rules as may be prescribed". 12.. Rule 7 of the General Sales Tax Rules, 1950, provides that the tax or taxes under section 3 or 5 or the notifications under section 6 shall be levied on the net turnover of a dealer, and that the net turnover should be determined by making the deductions specified therein from the gross turnover of a dealer. Rule 4 deals with the determination of the gross turnover of a dealer, and as already pointed out sub-rule (1) of that rule provides that except in cases covered by sub-rule (2) of that rule the gross turnover of a deale ..... X X X X Extracts X X X X X X X X Extracts X X X X
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