TaxTMI 
TaxTMI 
1968 (10) TMI 100
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.... the charges, as forming part of the turnover, were subjected to tax. The typical reasoning of the revenue for doing so is that the amount was charged and paid at the time of sale "along with the price of the goods " and so, it formed part of the turnover within the meaning of the definition of "turnover". An additional reason in support of that view was that lot cooly could not also fall within the scope of any of the items for which deduction was provided by rule 6 of the Madras General Sales Tax Rules, 1959. Broadly, therefore, the view maintained by the revenue is that charges, which may well be described as pre-sale charges, should be treated as part of the consideration for a sale and the lot charges partook of that character. The cha....
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....placed on this provision for the revenue to justify the charge in respect of lot cooly charges. In our opinion, the Explanation cannot be read in the abstract. Its context is with reference to the sale and turnover as defined. It is now well settled that the expression "sale of goods" in the State Legislative entry bears the same meaning and scope as it has been understood in the legislative practice of this country since the enactment of the Sale of Goods Act. The object of the Madras General Sales Tax Act is to levy a general tax on the sale or purchase of goods in the State. It is clear, therefore, that what could legitimately be brought to tax under the Act is the aggregation of the consideration for the transfer of property in the good....