R KALIAPPAN Vs. STATE OF MADRAS

JUDGEMENT

(1.) THE assessee returned a turnover of Rs. 21, 041-62 nP. The turnover was computed by the assessing authority at Rs. 24, 598-05 nP. He appealed and claimed relief in respect of a turnover of Rs. 3, 556, that is to say, the amount added by the assessing authority. His contention was however negatived. There was a further appeal to the Tribunal before whom for the first time it was claimed that the assessee should be assessed under section 7 of the Act. This section provides for compounded rates of tax in the case of certain assessees whose turnover exceeds Rs. 10, 000 but falls short of Rs. 50, 000 during the year. The Tribunal rejected this contention holding that section 7 would not apply to the case of this assessee.

(2.) IT is this order of the Tribunal the correctness of which is canvassed in the present tax revision case. It is not disputed that the assessee is a dealer registered under the appropriate section of the Central Sales Tax Act. Section 5 of the Madras General Sales Tax Act is a special provision enacted to deal with such assessees. It reads :-

(3.) THIS section accordingly brings to tax the turnover of a dealer registered under the Central Sales Tax Act notwithstanding that the quantum of his turnover may be below the general exemptible limit of Rs. 10, 000 at certain rates specified herein. The turnover herein referred to is that of the sale of goods in respect of which declarations under section 8(4) of the Central Sales Tax Act have been furnished, that is to say, goods purchased by the dealer in the course of inter-State trade. Section 7 of the Madras General Sales Tax Act however lays down that "notwithstanding anything contained" in section 3(1), every dealer whose turnover is not less than Rs. 10, 000 and not more than Rs. 50, 000, may at his option pay tax at certain compounded rates. What is contended for by Mr. Venkataraman, learned counsel for the assessee, is that section 7 is available to every dealer, notwithstanding anything contained in sub-section (1) of section 3. In the case of a dealer whose turnover does not exceed Rs. 50, 000 it is his claim that section 7 would apply and he, having exercised his option, is entitled to be taxed only at the compounded rates mentioned in section 7. It seems to us that this contention cannot prevail. Section 3 of the Act is the main charging section.