STATE OF RAJASTHAN Vs. MOHAN DAS GODUMAL

JUDGEMENT

(1.) IN these three cases, a similar question of law has been referred to this Court by the Board of Revenue for Rajasthan at Ajmer under section 15 (3) of the Rajasthan Sales Tax Act, 1954 (hereinafter referred to as "the Act" ). The assessee, M/s. Mohan Das Godumal, was running a hotel at Bhilwara and he was selling sweets and namkins. He also sold prepared tea to his customers. No books of account were maintained by the assessee nor he filed any returns of his turnover. The Assistant Sales Tax Officer, Ward C, Bhilwara, issued notices to the assessee in respect of his turnover for the years 1960-61, 1961-62 and 1962-63. The Assistant Sales Tax Officer estimated the annual turnover of the assessee in respect of the three years in question at Rs. 15,000 per year and passed best judgment assessments for the aforesaid three years. No tax was payable under the Rajasthan Sales Tax Act at the relevant time on the sale of deshi sweetmeats and namkins, on account of the provisions of section 4 (1) of the Act read with the Schedule, but the Assistant Sales Tax Officer was of the view that the sale of prepared tea by the assessee was taxable and he imposed tax and penalty upon the assessee in respect of the sale of prepared tea on estimate basis. The gross turnover of the assessee was estimated at Rs. 15,000 per year, while the taxable turnover relating to the sale of prepared tea was estimated at Rs. 1,500 during each one of the three years. The assessee preferred three appears before the Deputy Commissioner (Appeals), Commercial Taxes, Ajmer, one in respect of each of the three years. The Deputy Commissioner was of the view that as the taxable turnover of the assessee was less than Rs. 12,000 no exemption certificate was required to be obtained by him. Thus, the appellate authority held that the taxable turnover of the assessee was below the incidence of taxation and that there was no justification for imposition of tax upon the assessee. The appeals preferred by the assessee were allowed by a consolidated order passed by the Deputy Commissioner (Appeals) and the assessments were set aside for all the three years in question.

(2.) THE State Government filed three revision petitions before the Board of Revenue against the consolidated order passed by the Deputy Commissioner (Appeals) in respect of each one of the three years. THE revision petitions were dismissed by the Board of Revenue by separate orders. As the Board of Revenue did not dispose of the applications for making a reference made under sub-section (1) of section 15 of the Act within the time prescribed therefor, the State Government moved this Court under section 15 (3) of the Act and the Board of Revenue was directed to refer the following question of law to this Court for its opinion : " Whether under Notification No. D. 6788/f. 5 (72) E & T/59 dated 24th November, 1959, issued under section 4 (2) of the Rajasthan Sales Tax Act, 'turnover' means 'gross turnover' or 'taxable turnover' for purposes of computing the licence fee ?"