1970 (3) TMI 125

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.... the turnover of Rs. 10,777.04 out of the gross turnover related to outside State sales, the goods having been purchased and sold in Mysore State. The said return filed by the petitioner was found to be correct by the assessing authority after check of his accounts. The assessing authority however found that the net turnover of Rs. 19,688.95 included a turnover of Rs. 7,202.90 being the sales turnover of goods purchased in Mysore State against 'C' form declarations and sold within the State of Madras. Since the petitioner had opted to pay the tax under section 7, the tax payable under section 3(1) was computed on the total turnover of Rs. 19,688.95 apart from the tax payable by the dealer, under section 5 of the Act at 3% on the turnover of....

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.... separate and independent charge apart from the levy of tax under section 3(1) and that the levy of tax under section 7 is only in lieu of the tax leviable under section 3(1) and not in lieu of the tax leviable under any other provision of the Act. Section 7 gives an option to an assessee to pay tax at the rates specified therein based on his total turnover, instead of paying an ad valorem tax as provided in section 3(1) and this section does not concern itself with the tax leviable under section 5 at all. Of course for the purpose of levy under section 7 it is the total turnover of the dealer that matters and not his taxable turnover, while section 3(1) levies tax only on the taxable turnover. From the mere fact that the total turnover of ....