Separate sales tax charge under section 5 upheld despite prior assessment under section 7 of the same turnover.

Tax under section 5 of the Tamil Nadu General Sales Tax Act was held to be a separate and independent charge, even where the same turnover had already been assessed under section 7 on a compoundable basis. The Court relied on earlier Division Bench rulings that section 7 operates in lieu of tax otherwise leviable under the Act, but does not bar levy under section 5 on a portion of the turnover. The levy under section 5 on turnover already brought to tax under section 7 was therefore upheld, and the revision failed.

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Issues: Whether tax under section 5 of the Tamil Nadu General Sales Tax Act could be levied on turnover already assessed under section 7 of the same Act.

Analysis: The assessee contended that once an assessment was made under section 7 on a compoundable basis, no separate levy under section 5 could be made on any part of the same turnover. The Court noted that the question had already been decided in earlier Division Bench decisions holding that the levy under section 5 is a separate and independent charge, while the levy under section 7 operates in lieu of tax leviable under other provisions. On that basis, levy under section 5 on a portion of turnover already subjected to section 7 was treated as valid.

Conclusion: The levy under section 5 on turnover already assessed under section 7 was upheld, and the revision failed.

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