STATE OF MADRAS Vs. BANGALORE AUTOMOBILES SALEM

JUDGEMENT

(1.) THESE are petitions under Section 12 (B) of the Madras General Sales-tax Act to revise the orders of the Appellate Tribunal.

(2.) THE respondents were dealers in motor cars and their accessories. On the turnover of the sales of those goods, they were liable to pay sales tax at the standard rote of Re. 0-0-3 in the rupee, prescribed by Section 3d) (b) of the Act in addition they wore liable to pay tax at the rate of Re. 0-0-6 in the rupee under section 3 (2) (iv) of the Act. The assessing authorities included in the taxable turnover of each of these dealers amounts collected by them by way of tax under section 8-B of the Act and assessed that part of their total turnover also at the rate of Re. 0-0-9 in the rupee. In Dy. Commr. of Commercial Taxes, Coim-bator Divn. v. Krishnaswami Mudaliar and Sons (A) this Court held that the turnover made up of amounts collected by way of tax by a registered dealer could not be assessed at all to any tax under the Act Subsequent to that the Madras Legislature enacted Act xvii of 1954 to validate the levy of tax on amounts collected by a dealer by way of tax. The validity of that Act has been upheld by us in Sundarajan and Co. Ltd v. State of Madras, 1956-7 STC 105: ( (S) AIR 1956 Mad 298 ). (B) and that has been reiterated by us in TRC Nos. 46 etc. of 1955 (C) in which we have just delivered judgment.

(3.) THE only question that remains for determination in these cases is whether the tribunal was right in the view it took that amounts collected by way of tax and deemed to be part of the turnover of a dealer under Section 2 of Act XVII of 1954 were liable to be assessed only under Section 3 (1) (b) of the Sales-tax Act and that it would not be subject to the additional tax authorised by Section 3 (2) (iv) of the Act.