TMI Blog1983 (12) TMI 268X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax Officer, Ward C, Bhilwara, issued notices to the assessee in respect of his turnover for the years 1960-61, 1961-62 and 1962-63. The Assistant Sales Tax Officer estimated the annual turnover of the assessee in respect of the three years in question at Rs. 15,000 per year and passed best judgment assessments for the aforesaid three years. No tax was payable under the Rajasthan Sales Tax Act at the relevant time on the sale of deshi sweetmeats and namkins, on account of the provisions of section 4(1) of the Act read with the Schedule, but the Assistant Sales Tax Officer was of the view that the sale of prepared tea by the assessee was taxable and he imposed tax and penalty upon the assessee in respect of the sale of prepared tea on estim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of law to this Court for its opinion: "Whether under Notification No. D. 6788/F. 5 (72) E T/59 dated 24th November, 1959, issued under section 4(2) of the Rajasthan Sales Tax Act, 'turnover' means 'gross turnover' or 'taxable turnover' for purposes of computing the licence fee?" The notification dated 24th November, 1959, reads as under: "EXCISE AND TAXATION DEPARTMENT Notification Jaipur, November 24, 1959. No. D. 6788/F.5(72)ET/59.-In exercise of the powers conferred by subsection (2) of section 4 of the Rajasthan Sales Tax Act, 1954 (Rajasthan Act XXIX of 1954), and in supersession of Notification No. F.21(7)SR/55 dated the 14th April, 1955, published at page 40 of Part 1(B) of the Rajasthan Rajpatra dated the 14th Apr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n exemption certificate in accordance with the conditions of the notification dated 24th November, 1959. The "turnover" referred to in the aforesaid notification should necessarily refer to the turnover of the assessee in respect of relatable goods. As no tax was payable on the sales of sweets and namkins, on account of the provisions of sub-section (1) of section 4 read with the Schedule annexed to the Act, only the turnover of the assessee in respect of the remaining goods could be subjected to imposition of tax under the Act, except the goods which were exempted from payment of tax under sub-section (2) of section 4, on the fulfilment of the conditions specified in the notification issued under that section. The notification dated 24th N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... " must be interpreted in relation to its context and the "turnover" may mean only that part of the total turnover of the dealer in respect of which a licence is required. In our view, similar meaning should be given to the expression "turnover" occurring in the notification dated 24th November, 1959, and that expression should be interpreted as referring to that part of the total turnover of a dealer, in respect of which an exemption certificate was required. If that part of the total turnover of the assessee, which was relatable to the goods for which exemption certificate was required under the notification, was below the incidence of taxation then no liability to tax could be imposed upon such an assessee and the requirement of obtaining ..... X X X X Extracts X X X X X X X X Extracts X X X X
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