TaxTMI 
TaxTMI 
1983 (12) TMI 268
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....of account were maintained by the assessee nor he filed any returns of his turnover. The Assistant Sales Tax Officer, Ward C, Bhilwara, issued notices to the assessee in respect of his turnover for the years 1960-61, 1961-62 and 1962-63. The Assistant Sales Tax Officer estimated the annual turnover of the assessee in respect of the three years in question at Rs. 15,000 per year and passed best judgment assessments for the aforesaid three years. No tax was payable under the Rajasthan Sales Tax Act at the relevant time on the sale of deshi sweetmeats and namkins, on account of the provisions of section 4(1) of the Act read with the Schedule, but the Assistant Sales Tax Officer was of the view that the sale of prepared tea by the assessee was ....
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....his Court under section 15(3) of the Act and the Board of Revenue was directed to refer the following question of law to this Court for its opinion: "Whether under Notification No. D. 6788/F. 5 (72) E & T/59 dated 24th November, 1959, issued under section 4(2) of the Rajasthan Sales Tax Act, 'turnover' means 'gross turnover' or 'taxable turnover' for purposes of computing the licence fee?" The notification dated 24th November, 1959, reads as under: "EXCISE AND TAXATION DEPARTMENT Notification Jaipur, November 24, 1959. No. D. 6788/F.5(72)ET/59.-In exercise of the powers conferred by subsection (2) of section 4 of the Rajasthan Sales Tax Act, 1954 (Rajasthan Act XXIX of 1954), and in supersession of Notification No. F.21(7)....
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.... 3 of the Act, then no liability to tax could be imposed upon him and there was no corresponding requirement of obtaining an exemption certificate in accordance with the conditions of the notification dated 24th November, 1959. The "turnover" referred to in the aforesaid notification should necessarily refer to the turnover of the assessee in respect of relatable goods. As no tax was payable on the sales of sweets and namkins, on account of the provisions of sub-section (1) of section 4 read with the Schedule annexed to the Act, only the turnover of the assessee in respect of the remaining goods could be subjected to imposition of tax under the Act, except the goods which were exempted from payment of tax under sub-section (2) of section 4,....
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....f Madras v. Erode Yarn Stores [1961] 12 STC 175, their Lordships of the Madras High Court held that the expression "turnover" must be interpreted in relation to its context and the "turnover" may mean only that part of the total turnover of the dealer in respect of which a licence is required. In our view, similar meaning should be given to the expression "turnover" occurring in the notification dated 24th November, 1959, and that expression should be interpreted as referring to that part of the total turnover of a dealer, in respect of which an exemption certificate was required. If that part of the total turnover of the assessee, which was relatable to the goods for which exemption certificate was required under the notification, was belo....