Total turnover must include taxable and non-taxable sales when applying a turnover-based charging provision.

For liability under a turnover-based charging provision, total turnover must be computed by aggregating both taxable and non-taxable turnover. Turnover admitted under section 7-A could not be excluded merely because earlier rules referred to sections 3, 4 and 5, since rules cannot override the substantive charging section of the Act. The court held that section 3(1) required reference to the total turnover exceeding the prescribed limit, and the combined turnover crossed that threshold. Liability to tax therefore followed from the aggregate computation.

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Issues: Whether, for the purpose of liability under section 3(1) of the Sales Tax Act, the turnover taxable under section 7-A and the remaining turnover had to be aggregated in computing the assessee's total turnover.

Analysis: The total turnover under the Act was held to include both taxable and non-taxable turnover. The turnover admitted under section 7-A could not be isolated and excluded from the computation merely because the rules framed earlier referred to sections 3, 4 and 5. Rules cannot override the substantive provisions of the Act, and section 3(1) required reference to the total turnover exceeding the prescribed limit. On the figures admitted, the aggregate exceeded the statutory threshold, attracting liability to tax.

Conclusion: The turnover under section 7-A and the remaining turnover were required to be added together for determining liability, and the assessee was liable to tax. The result was against the assessee and in favour of the Revenue.

Ratio Decidendi: For determining liability under a turnover-based taxing provision, total turnover includes all turnover chargeable and non-chargeable under the Act, and rules cannot restrict or dilute the operation of the charging section.

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