TaxTMI 
TaxTMI 
1961 (11) TMI 46
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.... HIDAYATULLAH, J.-These five appeals on certificates granted by the High Court of Madras were consolidated and heard together. They arise out of proceedings against the appellants under the Madras General Sales Tax Act, 1939. The appellants are three companies carrying on business of sale of motor cars, motor car spare parts, and other goods. Messrs George Oakes (Private) Ltd., have filed Civil Appeals Nos. 1 to 3 of 1961 questioning a part of the sales tax imposed on them for the years 1950-51, 1951-52 and 1952-53. Civil Appeals Nos. 4 and 5 of 1961 have been filed respectively by Messrs Addison Co. (Private) Ltd., and Messrs Rane (Madras) Ltd., questioning similarly a part of the tax imposed on them for the year ending March 31, 1952. ....
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.... on his total turnover for the year: Description of the goods Rate of tax for every rupee in the turnover relating to such goods (i) Motor vehicles including motor cars, motor taxi-cabs, motor cycles and cycle combinations, Six pies." motor scooters, motorettes, motor omnibuses...... chassis of motor vehicles. In The Deputy Commissioner of Commercial Taxes v. M. Krishna- swami Mudaliar & Sons [1954] 5 S.T.C. 88., the Madras High Court held that amounts collected by a registered dealer from consumers by way of sales tax and paid over to the Government could not be included in the turnover of the registered dealer as part of the sale price of goods sold by him, and were not liable to be taxed again. The Madras Le....
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....ted is included in the turnover, it will be proper to tax that amount only at the minimum rate of 3 pies in the rupee under section 3(1) of the Act." The State of Madras then filed in the High Court applications for revision under section 12-B (1) of the Madras General Sales Tax Act, and the High Court held that the tax could be levied on the consolidated amount not only at 3 pies for every rupee of turnover but also at 6 pies in respect of the turnover relating to goods liable to the additional tax. In doing so, the High Court merely followed its earlier decision reported in State of Madras v. Bangalore Automobiles [1956] 7 S.T.C. 537. The High Court, however, granted certificates of fitness, and these appeals have been filed. Ear....
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....hwith to Government but keeps it with him, and turns it over in his business before he parts with it. Thus, the tax becomes, for the time being, a part of the circulating capital of the tradesman, and is turned over in his business. Again, it was said that the price paid by the purchaser was not so much money for the article plus tax but a composite sum. Therefore, in calculating the total turnover, there is nothing wrong in treating the tax as part of the turnover, because "turnover" means the amount of money which is turned over in the business. In the case to which we have referred the Validating Act was declared valid and constitutional. In the present appeals, we are required to work out the result of the Validating Act in respect of t....