1973 (3) TMI 118

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....64, the turnover of foodgrains was liable to sales tax. With effect from 1st October, 1964, foodgrains became liable to purchase tax under section 3-D. Only the first purchases were so liable. In either case the minimum taxable limit remained at Rs. 25,000. In other words, the sale of foodgrains was liable to tax only if the turnover of sales exceeded Rs. 25,000, and, similarly, the first purchases of foodgrains were liable to sales tax, if the turnover of such purchases exceeded Rs. 25,000. The Sales Tax Officer determined the turnover of sales of the assessee for the first six months at Rs. 14 000 and the turnover of the first purchases in the second half of the year at Rs. 13,000. Taking separately, neither sales tax was payable nor p....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....in section 2(i) (as it stood prior to its amendment in 1971) as follows: "2. (i) 'Turnover' means the aggregate amount for which goods are supplied or distributed by way of sale or are sold, or the aggregate amount for which goods are bought, whichever is greater, by a dealer either directly or through another, on his account or on account of others, whether for cash or deferred payment or other valuable consideration." It will be noticed that for the purposes of levy of sales tax, the turnover of sales or turnover of purchases whichever is greater is to be taken into account. The turnover of sales and purchases cannot be aggregated. Thus, in the instant case, it was open to the Sales Tax Officer either to take the turnover of sales o....