POTHEN JOSEPH AND SONS Vs. STATE OF KERALA

JUDGEMENT

(1.) The question that arises for determination is whether in fixing the turnover of the petitioner for imposing tax on him under S.8 of the Central Sales tax Act, 1956 (hereinafter called the Act) the turnover represented by the excise duty paid by the assessee should be deducted or not.

(2.) Shortly stated, the contention of the assessee is that by virtue of S.9 (3) of the Act, the tax payable by him will have to be assessed "in the same manner as the tax on the sale or purchase of goods under the general sales tax law of the State is assessed, paid and collected."

(3.) It is clear that had these sales been the subject matter of assessment under the General Sales Tax Act, 1125 which is the general sales tax law of the State concerned, the turnover represented by the excise duty paid will have to be deducted. This is so because under the General Sales Tax Act, 1125, turnover by virtue of the definition in S.2 (k) of that Act means the aggregate amount for which goods are bought by or sold by a dealer ... and by virtue of R.7 of the General Sales Tax Rules, 1950, which it is admitted are the rules applicable, the amounts of excise duty paid by the dealer to the State or to the Central Government shall be deducted under R.7 (1). The question is whether in computing the turnover for the purpose of assessment under the Act, the provision in the above rules must be applied or not.