ABU Vs. STATE OF KERALA

JUDGEMENT

(1.) SUB section (1) of S. 3 of the General Sales Tax Act, 1125, provides that subject to the provisions of that Act every dealer shall pay for each year a tax on his total turnover for such year. It also provides that the tax shall be calculated "at the rates specified in column (3) of schedule I for every rupee in the turnover relating to the goods noted against them in column (2) thereof and at the rate of two naye paise for every rupee in the turnover relating to all other goods. "

(2.) SUB section (4) of S. 3 provides that for the purposes of that section and the other provisions of the Act, turnover shall be determined in accordance with such rules as may be prescribed. Under sub-section (5) of s. 3 the buyer or the seller but not both, as determined by such rules as may be prescribed, shall be taxed in respect of the same transaction of sale and where a dealer has been taxed in respect of the purchase of any goods in accordance with the rules prescribed, he shall not be taxed again in respect of any sale of such goods effected by him.

(3.) THE only rule with which we are concerned in this case is R. 4 of the General Sales Tax Rules, 1950. Sub-rules (1) and (2) of the rule read as follows: - "[1] Save as provided in sub-rule [2) the gross turnover of a dealer for the purposes of these rules shall be the amount for which goods are sold by him. [2] In the case of groundnut and its kernel and goods notified under clause [vii] of S. 5 as liable to tax at any point of purchase, the gross turnover of a dealer for purposes of these Rules shall be the amount for which the goods are bought by him".