1963 (4) TMI 34

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....med that the assessee should be assessed under section 7 of the Act. This section provides for compounded rates of tax in the case of certain assessees whose turnover exceeds Rs. 10,000 but falls short of Rs. 50,000 during the year. The Tribunal rejected this contention holding that section 7 would not apply to the case of this assessee. It is this order of the Tribunal the correctness of which is canvassed in the present tax revision case. It is not disputed that the assessee is a dealer registered under the appropriate section of the Central Sales Tax Act. Section 5 of the Madras General Sales Tax Act is a special provision enacted to deal with such assessees. It reads: "Notwithstanding anything contained in sub-section (1) of secti....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....to every dealer, notwithstanding anything contained in sub-section (1) of section 3. In the case of a dealer whose turnover does not exceed Rs. 50,000 it is his claim that section 7 would apply; and he, having exercised his option, is entitled to be taxed only at the compounded rates mentioned in section 7. It seems to us that this contention cannot prevail. Section 3 of the Act is the main charging section. It deals with every dealer whose total turnover for a year is not less than Rs. 10,000 and fixes the rate of tax at 2 per cent. of the taxable turnover. The first proviso thereto reduces the rate to 1 per cent. in the case of certain goods. When we turn to section 7 it deals with the case of dealers whose turnover is not less than Rs. 1....