1963 (4) TMI 24

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....arind. Evidence was also secured to show that the respondent had been selling tamarind. The purchases and sales of tamarind found no place in his accounts. The result was that the accounts of the respondent were rejected and an estimate of his turnover both in brooms and in tamarind was made, resulting in an assessable turnover of Rs. 22,228. Against this order of assessment, an appeal was taken, which was however dismissed. The appellate authority found that the appellant had preferred no objections to the notice issued by the assessing authority proposing to fix his turnover by estimate. The contentions of the respondent that he had no transactions in tamarind and that he stopped all kinds of business including the business in brooms on 2....

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....ection 3. The scheme of the levy of tax under section 3(1) is that every dealer whose turnover exceeds Rs. 10,000 has to pay tax at 2 per cent. on his turnover. Certain goods mentioned in proviso (1) thereto are taxable at 1 per cent. of the turnover. We may leave out the case of dealers exclusively dealing in certain specified goods covered by proviso to section 3(1). Section 3(1) would accordingly require every dealer to maintain accounts, displaying the turnover that would be taxable at 1 per cent. or 2 per cent. Section 7 states that notwithstanding anything contained in sub-section (1) of section 3, all dealers with not less than Rs. 10,000 turnover may pay tax at certain fixed rates according as their total turnover falls between cert....

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.... of the return the annual tax or taxes payable at the rate or rates specified in section 3, 4, 5 or 7 or notified under section 17." See also rule 15(5) and (6). If therefore a dealer is to have the benefit of a payment of compounded rates of tax under section 7, that also requires to be provisionally fixed, that is, for the succeeding year also the dealer has to pay tax at such compounded rates, it being understood that he has exercised his option of coming within the scope of section 7. This conclusion is reinforced by section 7 itself. Sub-section (2) states thus: "Any dealer who estimates his total turnover for a year to be not more than fifty thousand rupees may apply to the assessing authority to be permitted to pay the tax under this....