Sales tax collected by a dealer was held outside turnover under the amended sales tax definition.

Sales tax collected by a dealer was held not to form part of "turnover" under the amended definition in section 2(i) of the Madras General Sales Tax Act, because the phrase "any other sums charged by the dealer" was read as part of the sale consideration and not as a separate tax collection. Omission of section 8-B did not extinguish the rule-based scheme permitting a registered dealer to collect tax subject to conditions and to remit it to the State. The implied repeal argument was rejected, as the statute and rules were capable of harmonious construction without true repugnancy.

---

---

Issues: Whether sales tax collected by a dealer formed part of "turnover" under the amended definition in section 2(i) of the Madras General Sales Tax Act; and whether omission of section 8-B affected the dealer's authority to collect tax or required the collection to be treated as turnover.

Analysis: The amended definition of "turnover" was construed as referring to the total amount set out in the bill of sale, that is, the consideration for the sale or purchase of goods. The language including "any other sums charged by the dealer" was held not to extend so far as to convert sales tax collected by the dealer into part of the sale consideration. The Court also held that the omission of section 8-B did not displace the governing rules framed under the rule-making power in section 19 and section 3(4) and (5), under which a registered dealer remained entitled to collect tax subject to conditions and obliged to pay it over to the State. The contention based on implied repeal was rejected because the statutory scheme was capable of being read harmoniously and no true repugnancy existed.

Conclusion: Sales tax collected by the dealer did not form part of "turnover", and the amended definition did not authorise taxation of the collected tax amount. The assessee's contention was accepted and the revision failed.

Final Conclusion: The assessment could not include the sales tax collected by the dealer within turnover, so the order of the appellate tribunal was sustained and the petition was dismissed.

Ratio Decidendi: In construing a sales tax statute, amounts collected by a dealer as sales tax do not become part of turnover unless the statutory language clearly treats them as part of the consideration for sale; repeal or omission of a related provision will not impliedly abrogate a consistent rule-based scheme unless irreconcilable repugnancy exists.

---