TaxTMI 
TaxTMI 
1962 (8) TMI 65
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....m sales tax was allowed only for the period commencing from the 22nd of September, 1955, to the end of the year, and no exemption was allowed for the period before the 22nd of September, 1955. The accounts of the firm were maintained from Diwali to Diwali. It is not in dispute that the firm deposited a fee of Rs. 10 on the 1st of July, 1955, for grant of an exemption certificate under the notification issued by the State Government on the 14th of April, 1955. It is contended by the firm that an application for grant of exemption was made by it on the day on which the fee was deposited, but the department's contention is that the application was made only on the 22nd of September, 1955, and was allowed on the 29th of September and a certific....
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....ate of Punjab and Others[1962] 13 S.T.C. 180; A.I.R. 1962 S.C. 745. and he has contended that the sales tax in Rajasthan being an annual tax, the exemption under the notification referred to above should be deemed to be effective for the whole year even though it was granted in the middle of the year on the 1st of October, 1955. Mr. Rajnarain for the State has tried to distinguish the decision of the Supreme Court in Mathra Parshad's case(1) by saying that it was a case of the nature contemplated by section 4(1) of the Act, there being an absolute exemption, whereas the exemption which was granted in the instant case was of a conditional nature and fell under section 4(2) of the Act and consequently the rule laid down by the decision did n....
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....the State Government exempted those sales from the tax. The authorities assessed the firm to sales tax during the accounting year up to the 27th of September, 1954, and allowed exemption only from the 27th of September, 1954. When the case went up to the Supreme Court, their Lordships, by a majority judgment, held as follows: "There is no doubt that the tax is a yearly tax. It was payable, in the first instance, by a dealer whose gross turnover during the financial year immediately preceding 1st May, 1949, was above the taxable quantum. The tax is to be levied on the taxable turnover of a dealer every year. The difference between gross turnover and taxable turnover is this, that to arrive at the taxable turnover of any period some deductio....
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....ut the year, unless the Act said that the Notification was not to have this effect, or the Notification fixed the date for the commencement of the exemption. In the present case, the Notification did not fix the date from which the exemption was to operate, probably because the Act omitted to make such provision, enabling the State to do so, and the exemption must, therefore, operate for the whole year, during which it was granted." It follows from this decision that if the notification by which an exemption is granted, fixes a date for the coming into force of the exemption, the exemption will be admissible from such date, or if there is a provision in that regard in the Act itself, that would settle the matter, and in cases where the not....
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....Act. Taxable turnover has been defined in section 2(s) as the aggregate amount of the proceeds of the sale of goods in a year after deducting therefrom such items as have been mentioned in the definition. The turnover which is liable to sales tax is thus annual. In section 10 of the Act, it has further been provided that "the assessment and determination of tax due for any year, shall be made after the returns for all the periods of that year have become due". These provisions make it evident that the sales tax in Rajasthan is an annual tax. The decision in Mathra Parshad's case[1962] 13 S.T.C. 180; A.I.R. 1962 S.C. 745. lends further support to the conclusion to which we have already arrived on the basis of the language of rule 12 and we t....