INDIAN POTASH LIMITED Vs. ASSISTANT COMMISSIONER CT

JUDGEMENT

(1.) THE definition of "turnover" in the Tamil Nadu General Sales Tax Act, 1959 lays emphasis on the consideration for the goods which are the subject-matter of sale. Price is not defined in the Act. It is defined in the Sale of Goods Act as the money consideration for the sale of goods. THE Sales Tax Act of the State does not require that for an amount to be regarded as part of the turnover, the consideration must have been paid by the actual buyer. THE definition of "turnover" is in relation to the dealer who receives the consideration and the source from which that consideration is received is not required to be gone into, so long as the receipt of the consideration for the sale is clear and is established.

(2.) THE Assessing Authority, having sought to tax the petitioner, who is a manufacturer of fertilizer but whose product Potash, is not subject to the Fertilizer (Control) Order so far as the pricing is concerned, and who had sold the product in terms of an administered Scheme framed by the Central Government which provided for payment of an amount which was described as a concession in the Scheme formulated by the Central Government to the manufacturer, subject to the manufacturer agreeing to sell the fertilizer to the farmer at the price set out in the Scheme, the sum total of the two amounts being regarded by the Assessing Authority as a consideration for the sale, the petitioner filed an Original Petition, challenging the assessments made on that basis. THE Taxation Special Tribunal having upheld the assessment, the Assessee is now before us.

(3.) HAVING regard to the pronouncement of the Apex Court that the price is that which the seller receives from the purchaser and that the subsidy received by the seller from the Government in terms of an Administered Scheme which does not provide that the amount paid by the Government is being paid on behalf of the buyer, the amount of the 'concession' received by the petitioner from the Government cannot be regarded as forming part of the price which alone can be subjected to tax under the Act.