Section 2 of that Act provided that In the case of sales made by a dealer before the 1st April, 1954, amounts companylected by him by way of tax under the Madras General Sales Tax Act, 1939 Madras Act IX of 1939 hereinafter referred to as the principal Act , shall be deemed to have formed part of his turnover.
The Sales Tax Appellate Tribunal, on further appeal, held that though the tax companyld be included in the total turnover, tax on the tax so included companyld be levied only at 3 pies for every rupee, but the additional tax at 6 pies for every rupee companyld number be levied.
In doing so, the High Court merely followed its earlier decision reported in State of Madras v. Bangalore Automobiles, .
Under the Madras General Sales Tax Act, 1939, turnover is defined inter alia as the aggregate amount for which goods are either bought by or sold by a dealer, whether for cash or for deferred payment or other valuable companysideration Sales tax is levied on the dealers on their total turnover for each year of account at the rate of 3 pies for every rupee of turnover.
The Deputy Commercial Tax Officer included in the total turnover the tax chargeable, and then levied the tax on the turnover relating to goods liable to the additional tax, at the rate of 9 pies, and on the remaining turnover, at 3 pies for every rupee.
4 and 5 of 1961 have been filed respectively by Messrs. Addison Co. Private Ltd., and Messrs. Rane Madras Ltd., questioning similarly a part of the tax imposed on them for the year ending March 31, 1952.
They arise out of proceedings against the appellants under the Madras General Sales Tax Act, 1939.
The State of Madras then filed in the High Court applications for revision under Section 12 B 1 of the Madras General Sales Tax Act, and the High Court held that the tax companyld be levied on the companysolidated amount number only at 3 pies for every rupee of turnover but also at 6 pies in respect of the turnover relating to goods liable to the additional tax.
Civil Appeals Nos.
Messrs. George Oakes Private Ltd., have filed Civil Appeals Nos.
The business of the three appellants included sales of goods described in the second sub section of Section 3 of the Madras General Sales Tax Act as well as sales companyered by the first sub section.
In Deputy Commissioner of Commercial Taxes v. M. Krishnaswami Mudaliar Sons, , the Madras High Court held that amounts companylected by a registered dealer from companysumers by way of sales tax and paid over to the Government companyld number be included in the turnover of the registered dealer in part of the sale price of goods sold by him, and were number liable to be taxed again.
The High Court, however, granted certificates of fitness, and these appeals have been filed.
The inclusion of the tax in the total turnover was objected to by these tradesmen.
The appellants are three Companies carrying on business of sale of motor cars, motor car spare parts, and other goods.
The companymon question which has been raised by the appellants arises in the following circumstances.
The Madras Legislature then passed the Madras General Sales Tax Definition of Turnover and Validation of Assessments Act, 1954 Act 17 of 1954 .
1 to 3 of 1961 questioning a part of the sales tax imposed on them for the years, 1950 51, 1951 52 and 1952 53.
Hidayatullah, J. These five appeals on certificates granted by the High Court of Madras were companysolidated and heard together.
Motor Vehicles including Six pies motor cars, motor taxi cabs, motor cycles and cycle company binations, motor scooters, motorettes, motor chassis of motor vehicles.
Subject to the provisions of this Act a every dealer shall pay for each year a tax on his total turnover for such year, and b the tax shall be calculated at the rate of three pies for every rupee in such turnover.
They appealed to the Special Commercial Tax Officer, but were unsuccessful.
