JADUNATH SAHA Vs. COMMISSIONER OF COMMERCIAL TAXES

JUDGEMENT

(1.) The petitioners, Jadunath Saha and Shyamendralal Saha, carry on Business in partnership under the name and style of M/s. Nityananda Bhandar. The petitioners are registered dealers under the West Bengal Sales Tax Act, 1954, the Bengal Finance (Sales Tax) Act, 1941 and also under the Central Sales Tax Act, 1956. There is no dispute that the petitioners are dealers in various notified commodities, like flour, suji, atta, soap, sugar, detergent powder, turmeric, fertiliser, etc., for which the petitioners are liable to pay sales tax. The petitioners also carry on business of purchase and sale of various commodities like kerosene oil, high speed diesel oil, mobil oil and vegetable oil which are not liable to be included in the "taxable turnover" of the petitioners for the purpose of computation of sales tax liability. The dispute, in the case, is about the includibility of the transactions relating to kerosene oil, high speed diesel oil, mobil oil and vegetable oil in the turnover of the petitioners for the purpose of levy of turnover tax. It has been contended on behalf of the petitioners that since the turnovers in respect of these commodities are not to be included in the taxable turnover of the petitioners, turnover tax should not be calculated by taking into consideration these items which have been specifically kept out of the purview of the Bengal Finance (Sales Tax) Act, 1941 by the Schedule annexed to the Act read with Section 6 of the Act.

(2.) The charging section of the Bengal Finance (Sales Tax) Act, 1941 is Section 4 which lays down that every dealer whose gross turnover in a given year exceeded the taxable quantum shall be liable to pay tax under that Act on all sales effected during the year. "Taxable quantum" has been defined in Section 4(5) to mean, in relation to any dealer who imports for sale any goods into West Bengal, Rs. 20,000, in relation to any dealer who manufactures or produces any goods for sale, Rs. 50,000 and in relation to any other dealer, Rs. 1,00,000. "Gross turnover" has not been defined in the Act. "Turnover" has, however, been defined by Section 2(1) to mean the aggregate of sale prices or parts of sale prices receivable during any given period. There are some special cases also mentioned in that definition which are not material for the purpose of this case.

(3.) Section 5 lays down the rate of tax and provides that the tax payable by a dealer shall be levied on his "taxable turnover" at the rates specified therein. Section 5(2) defines "taxable turnover"-In the case of a dealer who is liable to pay tax under Section 4 or under Section 8(3), that part of his gross turnover during any period which remains after deducting therefrom various categories of turnover enumerated in that sub-section.