STATE OF MADRAS Vs. TUNGABHADRA INDUSTRIES LTD

JUDGEMENT

(1.) THE interpretation of section 2(i) of the Madras General Sales Tax Act as amended by the Legislative Assembly of the Andhra State in May, 1954, is involved in this case. The assessment related to the year 1949-50.

(2.) IN the return of turnover submitted by the assessee, the tax collected from the purchasers was excluded. The Sales Tax Department sought to levy tax on this tax on ground that it formed part of the turnover. The Sales Tax Appellate Tribunal before whom the matter was carried in appeal by the assessee accepted the contention of the assessee and gave relief to him in that respect. The Government have preferred this revision petition against the order of the Appellate Tribunal. Pending this petition, the Andhra State Legislature amended the definition of "turnover" by substituting the following :-

(3.) INTERPRETING the definition of turnover as it stood prior to the amendment by the Legislature of the Andhra State a Bench of the Madras High Court in Deputy Commissioner of Commercial Taxes, Coimbatore v. Krishnaswamy ([1954] 5 S.T.C. 88; (1954) 2 M.L.J. 151), declared that the tax collected by a dealer did not constitute part of the turnover and therefore was not liable to be taxed again. Recently we took the same view in Deputy Commissioner of Commercial Taxes, Kakinada Division v. Bujranga Jute Mills Ltd. ([1955] 6 S.T.C. 376). But subsequent to the rendering of the judgment in that case, the learned Government Pleader brought to our notice the amended definition and requested us to reconsider the matter in the light of this amendment.