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TMI Blog1975 (3) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... he taxable turnover. This was arrived at on the basis that out of the turnover of Rs. 4,167.74 shown as second or subsequent sales of declared goods, only a turnover of Rs. 2,929.28 was not liable to tax as second or subsequent sales and the balance of Rs. 1,238.46 represented taxable turnover. Thus, the taxable turnover was determined by the assessing authority at Rs. 47,309.32 adding the said two sums (Rs. 9,214.17+ Rs. 1,238.46) to the taxable turnover of Rs. 36,856.69 returned. Since the assessee wanted to opt for the concessions under section 7, the assessing authority included the turnover on second sales of declared goods amounting to Rs. 2,929.28 and inter-State sales amounting to Rs. 7,413.13 in ascertaining the total turnover and thus arrived at the total turnover of Rs. 57,652.33. Since at the relevant period for the applicability of section 7 the total turnover shown exceeded Rs. 50,000, the assessing authority held that the assessee was not eligible for the benefit of section 7 and accordingly taxed at 2 1/2 per cent on the taxable turnover under section 3(1) of the Act. On appeal by the assessee, the Appellate Assistant Commissioner held that only a sum of Rs. 17.13 w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 286(3) of the Constitution of India, the definition of "total turnover" in section 2(q) of the Tamil Nadu General Sales Tax Act would have to be understood as not including such turnover as otherwise it would affect the competence of the legislature itself. He also wanted to contend that if the second sales of declared goods are to be included in the total taxable turnover for the purpose of section 7, it would amount to taxing the second sales of declared goods in violation of the prohibition contained in section 15(a) of the Central Sales Tax Act. The learned counsel in this connection also referred to rule 6(e) as supporting his argument. Before dealing with this argument, it is necessary to set out the relevant provisions in the Tamil Nadu General Sales Tax Act. Section 2, which is the definition section, defines "turnover" as meaning the aggregate amount for which the goods are bought or sold. The other portions in the definition are not material for the purpose of this case. "Total turnover" is defined as meaning the aggregate turnover in all goods of a dealer at all places of business in the State whether or not the whole or any portion of such turnover is liable to tax. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 15 of the Central Sales Tax Act makes a difference between these two types of goods. In the case of goods mentioned in the First Schedule it is open to the Legislature of the State to prescribe any rate of tax, but, in respect of declared goods at the relevant period, it could not exceed two per cent. Subject to this limitation as to the rate of tax and the single point levy, the legislature was competent to legislate with reference to the declared goods as well. Therefore, we do not find any difference between the turnover of goods mentioned in the First Schedule and the turnover of goods mentioned in the Second Schedule for the purpose of determining the total turnover under section 7. As already stated, the learned counsel was not prepared to go to the length of contending that the second sales of goods in respect of which a single point is fixed under the First Schedule are not liable to be included in the total turnover. Logically, we do not find any reason to exclude the second sales of declared goods in computing the total turnover for the purpose of section 7. The learned counsel in fact argued the question as if it were a question of legislative competence to includ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw would get automatically modified as to be in accordance with section 15(a). The same view was expressed by the Supreme Court in Devi Dass Gopal Krishnan v. State of Punjab[1967] 20 S.T.C. 430 (S.C.). It should also be pointed out that section 15(a) dealt with the rate of tax and the point of taxation and did not deal with liability of such turnover being included in determining the total turnover of an assessee. Therefore, neither the provisions of section 15(a) or article 286(3) of the Constitution were contravened nor the legislature had acted without jurisdiction. Further, the whole scheme of section 7 is to give the benefit of compounding rate to small traders. For ascertaining the total turnover of such person, therefore, we do not see any justification why such second sales of declared goods could not be included. The learned counsel for the assessee also invited our attention to rule 6, clause (e), of the Tamil Nadu General Sales Tax Rules. Clause (e) of the rule states that in determining the taxable turnover the amount for which goods are sold or purchased in the course of export or import or in the course of inter-State trade or commerce would have to be deducted from ..... X X X X Extracts X X X X X X X X Extracts X X X X
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