LAWS(DLH)-1965-5-9

KEWAL KRISHAN OM PARKASH Vs. STATE

Decided On May 11, 1965
KEWAL KRISHAN OM PARKASH Appellant
V/S
STATE OF DELHI Respondents

JUDGEMENT

(1.) ORDER

(2.) THIS reference made to thisCourt by the Chief Commissioner of Delhi under section 21 of the BengalFinance (Sales Tax) Act, 1941, arises in the following circumstances.The firm Kewalkishan Om parkash (hereafter referred to as the assossee) is adealer in cloth. During the assessment year 1954-55 its total turnoverwas Rs. 15.836/4.00. In this year the assessee paid Rs. 10/4.00as stitchingcharges to a tailor for stitching some quilts, mattresses and petticoats.From this it was deduced that the assessce sold stitched garments andquilts as well of a very nominal value. It was contended on behalf of theassessee before the authorities that since its turnover with respect to goodsmanufactured or produced for sale was less than Rs. 10,090.00 clause (a) ofsub-section (5) of section 4 was not applicable to the assesses and itcould be taxed only under clause (e) of sub-section (5) of section 4, as itthen stood, if its turnover was Rs. 30,000.00or more. The Chief Commissioner took the view that since the assessce's turnover included the salesproceeds, though of a very small amount, of manufactured goods also theassessee was liable to tax under clause (a) of sub-section (5) of section 4.In other words he held that where the turnover of an assessee is comprisedpartly of manufactured goods, he would be liable to tax if his totalturnover is more than Rs. 10,000.00even if the turnover with respect to themanufactured goods is very much lesser. The Chief Commissioner, however, referred to this Court the question of law as to whether "in thepresent case the dealer's turnover should be determined under sub-clause(a) or (e) of sub-section (5) of section 4 of the Bengal Finance (Sales Tax)Act, 1941, as extended to Delhi.