1984 (8) TMI 304

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....estion that comes up for consideration is, whether the textile committee cess collected by the assessee at the time of sale forms part of the sales turnover liable to tax under the Tamil Nadu General Sales Tax Act, 1959. It is not in dispute that the assessee in these cases at the time of collecting the sale price has also been collecting a cess called textile committee cess, as per the provisions....

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.... to charge under the Tamil Nadu General Sales Tax Act. On the other hand, the assessee contended that the textile committee cess collected has nothing to do with the sales tax, though as a fact the textile committee cess is collected at the point of sale. In spite of the fact that the levy of sales tax and the collection of textile committee cess are at the same point, i.e., at the point of sale, ....

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....d the seller who collects such gallonage fee from the purchaser has an accredited instrumentality for the recovery of the said gallonage fee and therefore the same cannot be taken to form part of the sales turnover. It was also held in that case that since the collection of gallonage fee from the purchasers and remitting the same into the treasury by the distilleries is a statutory obligation, the....