Sales tax under the Bengal Finance Act is levied on the sale transaction, not on the goods themselves.

Sales tax under the Bengal Finance (Sales Tax) Act, 1941 is characterised as an impost on the sale transaction, not on the commodity sold. The statutory scheme treats liability as arising from a dealer's turnover in sales, with the charging provision operating only where the seller's business turnover crosses the taxable quantum. The definitions of dealer and turnover reinforce that the tax attaches to sales effected by a person carrying on the business of selling goods, rather than to goods as such. The economic burden may pass to goods or consumers, but the legal incidence remains on the sale event.

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Issues: Whether sales tax under the Bengal Finance (Sales Tax) Act, 1941 is a tax only on the sale of goods or a tax also on the commodity sold.

Analysis: The statutory scheme treated sales tax as an impost arising from the sale transaction. The preamble stated that the Act was intended to impose a general tax on the sale of goods, while the charging provision fastened liability on a dealer whose turnover exceeded the taxable quantum. The definition of dealer and turnover showed that liability attached to sales effected by a person carrying on the business of selling goods, not to goods as such. The authorities considered did not displace this legal character. On a proper legal approach, sales tax was to be understood as a tax on the sale event, even though its economic burden might ultimately be passed on to the goods or the consumer.

Conclusion: Sales tax under the Act is a tax on the sale of goods and not a tax on the goods themselves; the assessee's contention was rejected.

Ratio Decidendi: Sales tax is legally attracted by the sale transaction and not by the commodity sold, even if its economic burden may ultimately fall on goods or consumers.

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