Law: Sales Tax Act, (III of 1951)

Section: 7(1) & 8(2)

  THE COMMISSIONER OF INCOME-TAX, EAST PAKISTAN-Appellant             (On appeal from the judgment and order of the High Court of East Pakistan, Dacca, dated the 7th April 1965, in Reference Cases Nos. 4, 5 and 6 of 1963).             Sales Tax Act (III of 1951), Ss. 7(1) & 8(2)----Goods once exempted from tax under S. 7-Go out of purview of Act and their gross takings cannot be taken into account for any purposes of Act-Central Government Notification No. 5, dated 16-3-52 read with Notification No. 7, dated 27-6-51 and Notification (Sales Tax) No. 10, dated 27-6-51-Government by Notification No. 5 read with Notification No. 7 exempting Ayurvedic medicines from tax payable under Act-Such goods cannot be added to the turnover of not exempted goods in determining total "turnover" in Notification No. 10, dated 27-6-51.             Ayurvedic medicines were exempted from sales tax by Government vide Notification No. 5, dated 16-3-52 read with Notification No. 7, dated 27-6-51. According to another Notification No. 10, dated 27-6-51 a producer or manufacturer having a turnover not exceeding Rs. 60,000 a year is completely exempted from payment of sales tax. The assessee on the basis of the exempted goods claimed that his turnover was less than Rs. 60,000. On the other hand the Sales Tax Officer asserted that notwithstanding the fact that some of his goods might have been exempted…