STATE OF MADRAS Vs. TUNGABHADRA INDUSTRIES LTD
LAWS(APH)-1955-3-7
HIGH COURT OF ANDHRA PRADESH
Decided on March 08,1955

STATE OF MADRAS Appellant
VERSUS
TUNGABHADRA INDUSTRIES LTD. Respondents


Referred Judgements :-

MADRAS PROVINCE V. BODDU PAIDANNA AND SONS [REFERRED TO]
BATA SHOE COMPANY V. BOARD OF REVENUE, WEST BENGAL [REFERRED TO]
UNION OF INDIA VS. UNITED MOTORS INDIA LIMITED [REFERRED TO]
STATE OF ANDHRA MADRAS KAKINADA VS. BAJRANGA JUTE MILLS LTD [REFERRED TO]
DEPUTY COMMISSIONER OF COMMERCIAL TAXES COIMBATORE DIVISION VS. M KRISHNASWAMI MUDALIAR AND SONS VELLORE [REFERRED TO]



Cited Judgements :-

GOVERNMENT OF ANDHRA VS. EAST INDIA COMMERCIAL CO LTD [LAWS(APH)-1956-12-1] [REFERRED TO]
CENTRAL WINES VS. SPECIAL COMMERCIAL TAX OFFICER INTELLIGENCE HYDERABAD I SECUNDERABAD [LAWS(APH)-1980-11-9] [REFERRED TO]


JUDGEMENT

CHANDRA REDDY, J. - (1.)THE interpretation of section 2(i) of the Madras General Sales Tax Act as amended by the Legislative Assembly of the Andhra State in May, 1954, is involved in this case. The assessment related to the year 1949-50.
(2.)IN the return of turnover submitted by the assessee, the tax collected from the purchasers was excluded. The Sales Tax Department sought to levy tax on this tax on ground that it formed part of the turnover. The Sales Tax Appellate Tribunal before whom the matter was carried in appeal by the assessee accepted the contention of the assessee and gave relief to him in that respect. The Government have preferred this revision petition against the order of the Appellate Tribunal. Pending this petition, the Andhra State Legislature amended the definition of "turnover" by substituting the following :-
"'Turnover' means the total amount set out in the bill of sale (or it there is no bill of sale, the total amount charged) as the consideration for the sale or purchase of goods (whether such consideration be cash or deferred payment or any other thing of value), including any sums charged by the dealer for anything done in respect of the goods sold at the time of or before the delivery of the goods and any other sums charged by the dealer, whatever be the description, name or object thereof."
(We are not concerned in this enquiry with the other provisions of the amended section).
Prior to the amendment, section 2(i) read thus :-

"'Turnover' means 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 consideration provided that the proceeds of the sale by a person of agricultural or horticultural produce grown by himself or grown on any land in which he has an interest he has an interest whether as owner, usufructuary mortgagee, tenant or otherwise, shall be excluded from his turnover."

(3.)INTERPRETING the definition of turnover as it stood prior to the amendment by the Legislature of the Andhra State a Bench of the Madras High Court in Deputy Commissioner of Commercial Taxes, Coimbatore v. Krishnaswamy ([1954] 5 S.T.C. 88; (1954) 2 M.L.J. 151), declared that the tax collected by a dealer did not constitute part of the turnover and therefore was not liable to be taxed again. Recently we took the same view in Deputy Commissioner of Commercial Taxes, Kakinada Division v. Bujranga Jute Mills Ltd. ([1955] 6 S.T.C. 376). But subsequent to the rendering of the judgment in that case, the learned Government Pleader brought to our notice the amended definition and requested us to reconsider the matter in the light of this amendment.
;


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.