OPERATIVE SUPPLY AND MARKETING SOCIETY LIMITED Vs. COIMBATORE DISTRICT CENTRAL CO DEPUTY COMMERCIAL TAX OFFICER COIMBATORE

JUDGEMENT

(1.) THIS batch of cases involves construction of section 5 of the Tamil Nadu General Sales Tax Act, 1959. The assessee, the Coimbatore District Central Co-operative Supply and Marketing Society Ltd., was found to have a turnover of Rs. 5, 30, 92, 979.52. Out of this turnover Rs. 3, 68, 34, 733.11 was given exemption under section 17 read with item 44 by an order of Government issued under that section. The taxable turnover was thus found to be Rs. 1, 62, 58, 246.41. THIS turnover was subjected to tax under section 3(1). Later, the Deputy Commercial Tax Officer, on a further verification of the assessment files, estimated a turnover of Rs. 9, 44, 156.90 to be liable to tax under section 5 of the Act. There is no controversy that this turnover represents sales of the type comprehended by section 5.

(2.) WHAT is contended for the assessee is that even so when the entire turnover of Rs. 5, 30, 92, 979.52 was the subject-matter of assessment under section 3(1), there is no further room for application of section 5. In other words, Mr. Chari submits that the assessment was an entire thing and, once it was subjected to tax under section 3(1), a few sales out of the assessment could not be singled out for charging under section 5. The argument goes so far to suggest that section 5's scope is confined only to lift or cancel the exemption limit provided by section 3(1) by the use of the words "whatever be the quantum of his turnover" in section 5. We are unable to accept that this is the proper construction to be placed on section 5. We are unable to accept that this is the proper construction to be placed on section 5. Section 3(1) is the main charging section which levies multi-point tax. But the charge will be attracted only if the dealer returns or is found to have a turnover beyond the exemption limit. The section thus provides for an exemption limit and also for a charge specifying the rate.

(3.) IT is not unusual that where a turnover of sales, when split up, is found to contain a variety of transactions which are differently dealt with for the purpose of charging under the Sales Tax Act, it is no argument, because there is a compendious assessment that the sales which attract the special charge could not be separated from assessment. Nor are we persuaded by the contention that the scope of section 5 is so narrow that it only has reference to cancellation of the exemption limit under section 3(1), and that, whatever be the quantum of turnover, the sales of the type mentioned in section 5 will not attract the charge.