STATE OF MYSORE Vs. GUJJADI NARAYAN NAYAK AND

JUDGEMENT

(1.) This reference relates to the levy of sales tax under the Mysore Sales Tax Act, 1957. The relevant facts and the question of law giving rise to this reference will be clear from the order of reference which is given below in full:

(2.) As mentioned in the above order, Section 5 of the Act is the charging section. Sub-section (1) makes every dealer liable to pay, for each year of assessment tax on his total turnover at the rate of 2 per cent of such turnover. This provision, read with the definition of 'turnover', shows that every sale or purchase is liable to the tax at every point. The proviso to Sub-section (1) and Sub-sections (2) to (5)(b) are exceptions to this provision. Sub-sections (6) to (9) relate to the determination of the turnover and the levy and collection of the tax.

(3.) Sub-sections (3) and (4) provide for levy of the tax at a single point of sale or purchase. When there are successive transactions in relation to the same goods, the tax is leviable on only one of those transactions and not on all o! them and if there is only one transaction the tax will be leviable in respect of that transaction. That categories of goods, the point of levy as also the rate of tax are Riven in the respective schedules. Sub-section (3) consists of two clauses, namely, (a) which provides for a single point levy on sales, and (b) which provides for a single point levy on purchases. Sub-sections (3) and (4), omitting the proviso to Sub-section 3 (a), which has no bearing on the question for consideration, read as follows :