TaxTMI 
TaxTMI 
1980 (9) TMI 250
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....elling the same. The question that came to be decided by the Board was whether the appellant was liable to purchase tax under section 7-A of the Tamil Nadu General Sales Tax Act, 1959, or not. Section 7-A of the Act reads as follows: "Levy of Purchase tax.-(1) Every dealer who in the course of his business purchases from a registered dealer or from any other person, any goods (the sale or purchase of which is liable to tax under this Act) in circumstances in which no tax is payable under section 3, 4 or 5, as the case may be, and either,(a) consumes such goods in the manufacture of other goods for sale or otherwise; or (b) disposes of such goods in any manner other than by way of sale in the State; or (c) despatches them to a place....
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.... satisfied. The only question that requires to be considered is, when the appellant purchased old silver jewellery and silver and made them into new jewellery or silverware whether the case can be brought within the scope of section 7-A(1)(a) or not. The expression used in section 7-A(1)(a) is "consumes such goods in the manufacture of other goods for sale or otherwise". Certainly the silver jewellery or the old silverware purchased by the appellant had been consumed in the manufacture of new silverware or new silver jewellery. But what the learned counsel for the appellant contends is whether they are old jewellery or new jewellery or whether they are different kinds of jewellery, still the jewellery continued to be silver jewellery and, t....
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....der section 3(1) of Rs. 67,900.70 can be brought under section 7 of the Act and the turnover of Rs. 15,431.09 under section 7-A can be brought under sub-section (2) of section 7-A and as such, in respect of both the turnovers, the appellant was entitled to pay the reduced rate of tax and both the turnovers ought not to be clubbed together. Section 7(1) of the Act states: "Notwithstanding anything contained in sub-section (1) of section 3, every dealer whose total turnover is not less than seventy-five (sic) thousand rupees, but not more than one lakh of rupees, may at his option instead of paying the tax in accordance with the provisions of that sub-section, pay tax at the following rates........" Sub-section (2) of section 7-A, which....
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....nd not different total turnovers and hence the "turnover" under section 7-A as well as the "turnover" under section 3(1) had to be aggregated for the purpose of finding out the "total turnover" under the Act and for determining the taxable turnover. The learned counsel for the appellant drew our attention to the provisions contained in section 53, namely, the rule-making section, read with rule 5 of the Tamil Nadu General Sales Tax Rules, 1959. Section 53 is the section conferring power on the Government to make rules and one of the matters with reference to which the Government can make a rule is, "determining the total turnover or turnover of a dealer for the purposes of this Act". Rule 5(1) and (2) on the other hand state: "5. (1) ....
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....t and the turnover of Rs. 43,359.58 was entitled to exemption by virtue of section 3(1) of the Act. The court stated: "Now, turning to the contention raised by the appellant, it can be summarised thus. The appellant has admittedly a turnover relating to sales amounting to Rs. 43,359.58. It is also admitted that the turnover of Rs. 14,717.50 is also taxable by virtue of the provisions of section 7-A. The two together exceed the Rs. 50,000 limit mentioned in section 3(1) and so the appellant is liable to pay tax under the Act. But it was contended before us by the counsel for the appellant that the only turnover that is taxable under the Act is that of Rs. 14,717.50 coming under section 7-A. The attempt is to leave out the sum of Rs. 43,00....