TMI Blog1960 (11) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... ee of Rs. 2,000 was levied. On appeal, a certain part of the turnover was deleted from that assessable to tax at per cent. and the licensable turnover was accordingly fixed at Rs. 37,18,933. In the appeal before it, the Tribunal took the view, following earlier decisions of its own, that the licence turnover is the turnover which is assessed to single point tax on the strength of the licence, and that the turnover that gets exempt with or without the licence should be excluded from the computation of the licence fee. Accordingly, the Tribunal fixed the turnover liable to licence fee at Rs. 2,71,611. The contention of the petitioner State is that the totality of the turnover which is Rs. 39,90,544, is the turnover on which the licence fe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levy contemplated by section 5 and becomes liable to be assessed under section 3. These provisions accordingly make it abundantly clear that a licence is essential for the purpose of getting the benefits of the concessions contemplated by the Act. It would not normally speaking be necessary to explain the scope of section 5 but for the fact that the scope of the relevant rule defining the turnover in cases where section 5 of the Act is attracted calls for scrutiny. Rule 6 of the Madras General Sales Tax Rules as it stood in the relevant year dealt with licences. Under sub-rule (4)(a) a graduated scale of fees for the grant or renewal of licences was fixed. It would be noticed that under section 5 as it stood six different commodities wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ression "turnover" found here must be interpreted in relation to its context and the turnover would accordingly mean only that part of the total turnover of the dealer in respect of which a licence is required under section 5. Otherwise there would be no meaning in differentiating the various goods covered by various subsections of section 5 and in fixing a different scale of fees in respect of each of those commodities. We have already referred to section 6-A of the Act, which provides for the denial of the concessions contained in section 5 of the Act if a licence is not taken out. That clearly points to the conclusion that no part of the turnover which is taxable at the normal rate under section 3 of the Act could be brought into the tur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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