COMMISSIONER OF SALES TAX Vs. PREM MISTHAN BHANDAR

JUDGEMENT

(1.) For the assessment years 1971-72, 1972-73 and 1973-74 the assessee, a dealer in sweetmeat milk and curd, filed its return disclosing the gross turnover at less than Rs. 25,000. On 24th Aug., 74 the assessment order was passed and the assessee was declared non-taxable. Later on it transpired that the minimum turnover of Rs. 25,000.00 provided in Notification No. 9378, dated 6th Oct., 1971 did not apply to the assessee. Consequently notice under Sec. 21 was issued and in proceedings for escaped assessment gross turnover was determined at Rs. 20,000.00 and net turnover at Rs. 7,000.00. The order was upheld in appeal. In revision it was held that as milk and curd were exempt under Sec. 4 their turnover could not be taken into account tor determining the gross turnover of the assessee and if exempted turnover was excluded then the assessee shall be deemed to carry on business exclusively in sweetmeat and the Notification No. 9378 was applicable to him and no liability could be imposed on him as his turnover was below Rs. 25,000.00.

(2.) Aggrieved against the decision of Revising Authority the Commissioner of Sales Tax has filed this revision and has raised number of questions but the question which really calls for decision is quoted below.

(3.) It was urged that turnover in the notification should be understood in the same sense as it is defined in the Act. According to the learned counsel as the turnover means both taxable and exempted goods are turnover of the assessee for applicability of the notification remains the same and it was below Rs. 25,000.00 the assessee was not liable to pay tax on it. The argument overlooks the.word 'exclusively. The expression 'dealing in goods mentioned below has to be read along with the word 'turnover. If a person is exclusively carrying on business in notified goods his turnover is bound to be only of these goods. If the turnover comprises of any other goods the dealer shall not be carrying on business exclusively in goods mentioned in the notification.