TMI Blog2019 (3) TMI 1483X X X X Extracts X X X X X X X X Extracts X X X X ..... akes the intention of the legislature clear and unambiguous that except the deductions provided under the first proviso to Section 6B( 1) nothing else can be deducted from the total turnover as defined under Section 2(u2) for the purpose of levy of turnover tax under Section 6B of the Act - The submission of learned counsel for the appellant that the total turnover in Section 6B( 1) is to be read as taxable turnover and the determination of the rate of the turnover tax is to be ascertained on the taxable turnover on the face of it is unsustainable and deserves outright rejection. The appeals are without substance and the same are dismissed. - CIVIL APPEAL NO(s). 4837 OF 2011, CIVIL APPEAL NO(s). 4838 OF 2011 - - - Dated:- 28-3-2019 - A. M. KHANWILKAR And AJAY RASTOGI, JJ. JUDGMENT Rastogi, J. The present appeals have been preferred against the impugned judgment dated 17th April, 2007 passed by the High Court of Karnataka disposing of the Sales Tax Revision Petition examining the applicability of the turnover tax as defined under Section 6B( 1) by the Karnataka Sales Tax Act, 1957(hereinafter being referred to as KST Act ). 2. The brief facts of the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... read down the provision in a manner that it do not offend the Constitutional scheme. The concept of total turnover has been incorporated under Section 6B( 1) for the purpose of identification of the dealers and for prescribing rate/slabs and the actual levy is intended only on intrastate turnover by reason of the proviso, it may be within the competence of the State Legislature. In support of submission, learned counsel has placed reliance on the decision of this Court in Indra Das Vs. State of Assam 2011(3) SCC 380 and Rakesh Kumar Paul Vs. State of Assam 2017(15) SCC 67. 6. Per contra, Mr. Devadatt Kamat, learned AAG appearing for the respondent State submits that the issue in the instant appeals stands conclusively answered by this Court in M/s. Hoechst Pharmaceuticals Ltd. and Others Vs. State of Bihar and Others 1983(4) SCC 45 and further submits that once the constitutional validity of Section 6B has been upheld by the jurisdictional High Court in the series of decisions, wherein the challenge to Section 6B( 1) offending Article 14 and 19(1)(g) of the Constitution of India regarding the classification of dealers being repelled and it was held that the inclusion of inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a dealer, either directly or through another, on his own account or on account of others, whether for cash or for deferred payment or other valuable consideration; . [6B. Levy of Turnover Tax.[( 1) [Every registered dealer and every dealer who is liable to get himself registered under subsections (1) and (2) of Section 10] whose total turnover in a year is not less than [ten lakh] rupees whether or not the whole or any portion of such turnover is liable to tax under any other provisions of this Act, shall be liable to pay tax, (i) at the rate of one and a quarter per cent of his total turnover, if his total turnover is not less than ten lakh rupees but is less than two hundred lakh rupees in a year; or (ii) at the rate of one and three -fourths per cent of his total turnover, if his total turnover is not less than two hundred lakh rupees [but is less than five hundred lakh rupees in a year; or] (iii) at the rate of [two and three fourth per cent] of his total turnover, if his total turnover is not less than five hundred lakh rupees in a year]: Provided that no tax under this subsection shall be payable on that part of such turnover which relates to, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of dealers whose gross turnover during a year exceeds ₹ 5 lakhs for the purpose of levy of surcharge, in addition to the tax payable by him, is not assailable. So long as sales in the course of inter State trade and commerce or sales outside the State and sales in the course of import into, or export out of the territory of India are not taxed, there is nothing to prevent the State Legislature while making a law for the levy of a surcharge under Entry 54 of List II of the Seventh Schedule to take into account the total turnover of the dealer within the State and provide, as has been done by subsection (1) of Section 5 of the Act, that if the gross turnover of such dealer exceeds ₹ 5 lakhs in a year, he shall, in addition to the tax, also pay a surcharge at such rate not exceeding 10 per centum of the tax as may be provided. The liability to pay a surcharge is not on the gross turnover including the transactions covered by Article 286 but is only on inside sales and the surcharge is sought to be levied on dealers who have a position of economic superiority. The definition of gross turnover in Section 2(j) of the Act is adopted not for the purpose of bringing to surchar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cause the State cannot at their whims and fancies burden the citizens without authority of law. In other words, when the competent Legislature mandates taxing certain persons/certain objects in certain circumstances, it cannot be expanded/interpreted to include those, which were not intended by the legislature. 34. The passages extracted above, were quoted with approval by this Court in at least two decisions being CIT v. Kasturi and Sons Ltd. (1999) 3 SCC 346 and State of W.B. v. Kesoram Industries Ltd. (2004) 10 SCC 201 (hereinafter referred to as Kesoram Industries case , for brevity). In the later decision, a Bench of five Judges, after citing the above passage from Justice G.P. Singh's treatise, summed up the following principles applicable to the interpretation of a taxing statute: (i) In interpreting a taxing statute, equitable considerations are entirely out of place. A taxing statute cannot be interpreted on any presumption or assumption. A taxing statute has to be interpreted in the light of what is clearly expressed; it cannot imply anything which is not expressed; it cannot import provisions in the statute so as to supply any deficiency; (ii) Bef ..... X X X X Extracts X X X X X X X X Extracts X X X X
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