Contextual interpretation of turnover under a special sales tax concession limits the term to Schedule III sales only.

Where a statutory definition is made subject to the subject or context, the meaning of "turnover" in a special concessionary provision must be drawn from that provision's scheme and object rather than from the general definition. The High Court held that section 13(1) of the Madhya Pradesh General Sales Tax Act used "turnover" only for sales of goods specified in Schedule III, because the licence fee was linked to that limited category and the broader definition would create anomalous results. The rejection of the licence application was therefore set aside and reconsideration was directed on the restricted turnover basis.

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Issues: Whether the word "turnover" in section 13(1) of the Madhya Pradesh General Sales Tax Act, 1958 means the aggregate turnover of all sales of a dealer, or only the turnover in respect of sales of goods specified in Schedule III.

Analysis: Section 2(t) defined "turnover" broadly as the aggregate of sale prices of all goods, but the definition was expressly subject to repugnancy in the subject or context. Section 13(1), read with rule 4(3), dealt with a special concession for dealers carrying on business in Schedule III goods and fixed the licence fee by reference to turnover in respect of those goods. The scheme of the provision, the nature of the scheduled goods, the practical difficulty of keeping accounts in small transactions, and the fact that the licence fee was payable in lieu of tax on such goods showed that the concession was intended to operate with reference only to the relevant Schedule III turnover. The broader definition could not be mechanically imported where it produced anomalous results inconsistent with the object of the enactment.

Conclusion: The word "turnover" in section 13(1) means only the turnover in respect of sales of goods specified in Schedule III, and the petitioner was entitled to consideration of the licence application on that basis.

Final Conclusion: The impugned rejection was set aside and the matter was sent back for reconsideration in accordance with the restricted construction of the turnover requirement.

Ratio Decidendi: Where a statutory definition is expressly made subject to repugnancy in the subject or context, the meaning of the term in a special concessionary provision must be gathered from the scheme, object, and context of that provision rather than by mechanically applying the general definition.

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