TMI Blog1994 (7) TMI 313X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 in O.P. Nos. 6743 and 6744 of 1993, exhibits P1 to P3 in O.P. No. 16931 of 1992 and exhibits P1, P4 and P7 in O.P. No. 3430 of 1994 to the extent tax is levied on the amount of subsidy were quashed. Though assessments in O.P. Nos. 16931 of 1992 and 3430 of 1994 were taken up in appeal under section 34 of the Kerala General Sales Tax Act, the learned single Judge held that it is not necessary to relegate the parties to the appellate remedy in view of the finding that the amount of subsidy is not part of the taxable turnover of the respondents. 2. The contention of the appellants is that the learned single Judge ought to have accepted the plea of the appellants that the payment of subsidy was with reference to the event of sale and as t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 85, which repealed and replaced a similar earlier order of 1957, regulates the sale and distribution of fertilisers. Sub-clause (1) of clause 3 which is in Part II of the order relating to the price control, authorises the Central Government to fix the maximum prices or rates at which any fertiliser may be sold by a dealer, manufacturer or a pool handling agency. This is done by notification in the official gazette. The object behind it is to regulate the equitable distribution of fertilisers and making it available at fair price. Sub-clause (2) authorises the Central Government to fix different prices or rates for fertilisers having different periods of storage or for different areas or different classes of consumers, having regard to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be calculated on the quantities of fertiliser cleared through excise in any given month from November 1, 1977. It was the amount so received from the Fund Account, constituted and administered by the Central Government, which was in the nature of a subsidy paid to the respondents, that was brought to tax under the Kerala General Sales Tax Act as part of their taxable turnover of the fertilisers. 5.. The respondents objected to the inclusion of the amount in their taxable turnover contending that the amount received which is in the nature of subsidy is not taxable. The assessing authority overruled the said objection and completed the assessments levying tax on the amount of subsidy as well. 6.. The learned Government Pleader contended t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t payable to the dealer as consideration for the sale of goods and of "turnover" which meant the aggregate of the sale prices received. From the definition of the word "turnover" in the Kerala Act, it is not possible to distinguish the Andhra Pradesh High Court's decision as sought by the learned Government Pleader. The learned single Judge was justified in holding that the aforesaid decisions are directly in point and cover the cases in favour of the respondents. On going through the decisions, we also agree with the said view. 7.. The learned single Judge held that as the sale is not conditional on the Central Government paying any amount by way of subsidy and as there is no agreement between the parties for any further amount to be pai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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