- (1.)In all these petitions filed under Art. 226 of the Constitution of India, the legality of the levy of sales tax under the provisions of the Mysore Sales Tax Act on the turnover of Petitioners has been challenged. The turnover represents the amounts realised by sale of eatables and refreshments in hotels or restaurants kept by petitioners. Under Sec. 3 (a) of the Act the tax is payable on the annual turnover of every dealer.
(2.)Subsection (6) which at first prescribed the rate at which the tax is payable as three pies per rupee was altered by Act 25 of 1951 and now reads as follows: " JUDGEMENT_20_LAWS(KAR)9_1956.htm
(3.)Sec. 11 of the Act as amended states:" No person, other than a registered dealer liable to the payment of tax under sub-sections (2) and (2-A) of section 3 shall collect any amount by way of tax under this Act; nor shall such registered dealer make any such collection except in respect of the sale or purchase of the goods specified in Schedule I and except in accordance with such conditions and restrictions, if any, as may be prescribed ". Sec. 3 (2) provides that in regard to the articles specified in Schedule I the tax is to be levied and at the point mentioned therein. Sec. 3 (2-A) deals with liability of persons not having a place of business in Mysore.
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