1960 (6) TMI 22

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.... C.J.-This revision petition raises the question whether the petitioner is entitled to exemption under section 4 of the Madras General Sales Tax Act, 1939. The petitioner is a distributor of certain medicinal preparations. In the year 1957-58, his return disclosed a turnover of Rs. 7,57,313-12-0 out of which exemption was claimed on Rs. 2,33,687-0-9 on the ground that excise duty was paid under....

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....les Tax Act. Section 4 in so far as it is relevant for the enquiry, enacts: "The provisions of this Act shall not apply to the sale of electrical energy, motor spirit as defined in the Madras Sales of Motor Spirit Taxation Act, 1939, taxed tobacco as defined in section 2, clause 13, of the Madras Tobacco (Taxation of Sales and Registration) Act, 1953, (Madras Act IV of 1953) and any goods on wh....

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....ating drug or article containing such liquor or drug from the observance of all or any of the provisions of this Act on the ground that such liquor, drug or article is required for a medicinal, scientific, industrial or such like purpose." In excise of the power conferred by this section, the State Government issued a notification in 1938. Clause (2) of that notification recites: "..............th....

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....d not on the whole preparations as net. That is, the medicine as such is not subject to excise duty; it is only that part of the medicine which represents the spirit that attracts clause (2). That being so, the assessee would not have paid excise duty on the preparations as such but only on the spirituous content of the preparations. Therefore, the total turnover in regard to which exemption was c....