RAMCHANDER Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) THIS is a revision against the appellate order of the Deputy Commissioner, Sales Tax (Appeals), Kota Division, Kota dated 11. 5. 60, by which he has confirmed the assessment order of the Assistant Sales Tax Officer, Tonk, and imposed assessment of tax of Rs. 144. 62 NP on the applicant. The contention on behalf of the applicant is that his taxable turn-over during the year under assessment (1957-58) admittedly being only Rs. 6157/11/-, much below the limit prescribed by sec. 3 (1) of the Rajasthan Sales Tax Act, 1954 Rs. 12,000/-, (hereinafter referred to as the Act), he could not be assessed to sales tax on this amount. The learned Deputy Commissioner, Sales Tax (Appeals) has rejected this contention with the observation that under sec. 3 (2) of the Act the applicant had been correctly assessed to tax because of his proportionate sales having exceeded the limit of Rs. 12,000/- and his having obtained Registration Certificate willingly. The point for determination, therefore, is whether the case of the applicant is covered by sec. 3 (2) of the Act and whether only because of his obtaining the Registration Certificate the applicant can be assessed to tax. THIS would necessitate the examination of the relevant provision of law in this behalf, Sec. 3 of the Act is not the 'charging section'; It only describes "incidence of taxation or a liability to pay tax,", for the purpose relevant to the present case, as " (1) Subject to the provisions of this Act every dealer whose turn-over in the previous year in respect of sales or supply of goods exceeds (c) Rs. 12,000/-". "shall be liable to pay tax under this Act on his taxable turnover in respect of sales or supplies of goods effected from the date of commencement of this Act. "

(2.) IT very dearly shows that if a dealer has a turnover in 'previous year', defined by sec. 2 (m) to mean "the 12 months ending on the 31st day of March next preceding the assessment year, or, if the accounts of a dealer have been made upto date within the said 12 months in respect of a year ending on any date other than the said 31st day of March then, at the option of the dealer ending on the date up to which accounts have so been made up", (Note.-The provision is not relevant for the present case) in respect of "sales or supplies of goods exceeding Rs. 12,000/-", he shall be "liable to pay tax" on his "taxable turn-over" in respect of all sales or supplies of goods effected during the assessment year. In other words, the liability to pay tax under the Act on his taxable turnover by a dealer during any assessment year depends not on this limit of Rs. 12,000/-during that year but during the year immediately preceding it. Once the dealer becomes "liable to pay tax" under sec. 3 (1) (c) of the Act, he shall have to pay tax in accordance with the provisions of the Act on his taxable turnover in respect of sales or supplies of goods effected during the assessment year.