TaxTMI 
TaxTMI 
1991 (6) TMI 232
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....d the total turnover of the assessee at Rs. 9,63,785 for the purpose of the assessment under the Kerala General Sales Tax Act. But, for the purpose of assessment under the Kerala Surcharge on Taxes Act, 1957, the assessing authority included the sales tax collections also in the turnover fixed for the assessment under the Kerala General Sales Tax Act. Thus, the total turnover for the purpose of surcharge assessment exceeded Rs. 10,00,000. Under section 3 of the Kerala Surcharge on Taxes Act, surcharge was levied at 8 per cent. The assessee pleaded that the sales tax collected should not be included in the turnover for the purpose of assessment under the Kerala Surcharge on Taxes Act. This plea was negatived by the assessing authority and by....
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....ve per centum, and (b) exceeds ten lakhs rupees in a year, be increased by a surcharge at the rate of eight per centum, of the tax payable for that year, and the provisions of the Kerala General Sales Tax Act, 1963, shall apply in relation to the said surcharge as they apply in relation to the tax payable under the said Act: .... .... .... (2) Notwithstanding anything contained in sub-section (1) of section 22 of the Kerala General Sales Tax Act, 1963, no dealer referred to in sub-section (1) shall be entitled to collect the surcharge payable under the said sub-section." 3.. Kerala Surcharge on Taxes Act has not defined the word "turnover". But, in the Kerala General Sales Tax Act, the words "turnover", "total turnover" a....
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.... from the purview of the taxable turnover in making the assessment under the Kerala General Sales Tax Act. The question is, whether the same consideration will apply in making an assessment under the Kerala Surcharge on Taxes Act, 1957. 4.. We are of the view, that in the absence of provisions similar to section 2(xxv) and rule 9(1) of the Kerala General Sales Tax Act and the Rules in the Kerala Surcharge on Taxes Act, 1957, the entire consideration received for the sale by a dealer should be included in the turnover. So far as the purchaser is concerned, he pays for the goods what the seller demands, i.e., price even though it may include tax. The price of the goods plus tax and other amounts collected form the consideration for the sal....
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....ve been referred to in a subsequent decision of the Supreme Court (Three Member Bench)-Joint Commercial Tax Officer v. Spencer & Co. [1975] 36 STC 188. There is a later decision of a Bench, consisting of two Judges in Central Wines v. Special Commercial Tax Officer [1987] 65 STC 48, wherein the earlier decisions in George Oakes (Private) Ltd. case [1961] 12 STC 476 and Anand Swarup Mahesh Kumar's case [1980] 46 STC 477 have been adverted to. Under the Kerala General Sales Tax Act, there is no statutory obligation or duty to collect the sales tax payable by the dealer from his customers. The dealer is only enabled to pass on the tax to the customer. The amount so collected forms part of the purchase price. It is because of the specific provi....