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TMI Blog2016 (3) TMI 1203X X X X Extracts X X X X X X X X Extracts X X X X ..... 993 and 1993-1994, the appellant had claimed that entry tax amounts collected separately from the customers in the sale bills and paid to the Government will not form part of turnover so as to be subjected to levy of sales tax under the KST Act. This contention of the appellant was not accepted and the entry tax so collected by the appellant from the customers was treated as part of turnover and, on that, sales tax was also levied by the Assessing Officer. This view taken by the Assessing Officer was upheld by the High Court as well in the impugned judgment. For proper understanding of the matter, we reproduce the provisions of Section 3A of the KTEG Act which reads as under: "Section 3-A. Collection of tax by registered dealer - (1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the purchase and, therefore, are liable to be included in the turnover of purchases. Reliance is placed by the State Government on M/s. George Oakes (P) Ltd. v. State of Madras' in which this Court while interpreting a similar provision in the Madras General Sales Tax Act, 1939 observed that the expression 'turnover' meant the aggregate amount for which goods were bought or sold whether for cash or deferred payment or other valuable consideration and when a sale attracted purchase tax and the tax was passed on to the consumer what the buyer had to pay for the goods included the tax as well and the aggregate amount so paid would fall within the definition of turnover. In the above case, the court was construing the meaning o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax payable by him on the transaction of sale to the purchaser, such tax does not form part of the consideration for purposes of levy of tax on sales or purchases but where there is no statutory provision authorising the dealer to pass on the tax to the purchaser, such tax does form part of the consideration when he includes it in the price and realizes the same from the purchaser. The essential factor which distinguishes the former class of cases from the latter class in the existence of a statutory provision authorising a dealer to recover the tax payable on the transaction of sale from the purchaser. It is on account of the above distinction that this Court held in Joint Commercial Officer, Division II, Madras-2 v. Spencer & Co. that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ified in a notification issued under Section 3 of the Act. In fact, we are not even required to go into this discussion in greater detail as a Seven Bench Judgment of this Court in 'R.S. Joshi etc. v. Ajit Mills Ltd. and Another etc.' [1977 (4) SCC 98] has interpreted an identically worded provision in the manner we have suggested above. We reproduce the relevant portion of the said judgment hereinbelow: ".....Even here we may read S. 46(1) and (2): "46(1) No person shall collect any sum by way of tax in respect of sale of any goods on which by virtue of Section 5 no tax is payable. (2) No person, who is not a Registered dealer and liable to pay tax in respect of any sale or purchase, shall collect on the sale of any goods any ..... X X X X Extracts X X X X X X X X Extracts X X X X
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