STATE OF KERALA Vs. RAGHAVAN PILLAI

JUDGEMENT

(1.) This appeal is by the State against a decree setting aside an order of assessment of sales tax. In the period from 17-8-1950 to 31-3-1951, the plaintiff, a dealer in tobacco at Quilon, had collected Rs. 9041-13-9 as sales tax from his customers. The sales tax authorities reckoned the tax so collected as part of his turnover and assessed tax thereon amounting to Rs. 2201-8-1. In this suit, the plaintiff pleaded that the tax collected by him for remittance to the State could not be part of his turnover and therefore was not assessable to tax. The State, on the other hand, supporting the impugned order of assessment, contended "the sales tax collected with the sale value formed part of the turnover which is the aggregate amount for which goods are either bought or sold by a dealer." The Additional District Judge, following a ruling of the Travancore - Cochin High Court reported in Velayudhan v. Agricultural Income Tax and Sales Tax Officer (AIR 1953 TC 618) accepted the plaintiff's plea and decreed the suit. Hence this appeal.

(2.) The only question that materially arises for consideration is whether the sales tax collected by the dealer from his customers would be part of his turnover as defined in the General Sales tax Act, XI of 1125.

(3.) S.2(k) of the Act defined,