Composition scheme taxation excludes regular turnover concession; dealer cannot import general charging benefit into special assessment.

A dealer who elects the optional compounding scheme is taxed under that special, self-contained method, so concessions attached to the regular charging provisions cannot be imported into it. The turnover exclusion available under the general provision applies only within the regular assessment framework and does not extend to a dealer who has voluntarily chosen composition at a fixed rate. The clarification issued by the Commissioner was consistent with this statutory distinction and is therefore upheld; the dealer cannot exclude the first three lakhs of turnover while paying tax under the compounding scheme.

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Issues: Whether a dealer who has opted to pay tax under the compounding scheme under section 7-E of the Tamil Nadu General Sales Tax Act is entitled to exclude the first three lakhs of turnover by relying on section 3(1)(b) of the Act.

Analysis: Section 3 and section 3(1)(b) operate as regular charging provisions, whereas section 7-E provides an optional compounding scheme at a fixed rate. The benefit under section 3(1)(b) is linked to the regular charging framework and cannot be extended to a dealer who has voluntarily chosen the special composition method. The scheme under section 7-E is a distinct, self-contained mode of assessment and taxation, and the concession available under section 3(1)(b) does not apply to it. The clarification issued by the Commissioner correctly reflected this statutory position.

Conclusion: The dealer is not entitled to claim exclusion of the first three lakhs of turnover while paying tax under section 7-E, and the clarification denying such benefit is upheld.

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