Law: Sales Tax Act, (III of 1951)

Section: 8,8(2),3(6)(c)

Sales-tax Act, 1951 -- Sections 3(6)(c), 8, 8(2) and Notification No. 10 dated 27th Dune 1951 -- Gross turnover of manufactured and non-manufactured goods -- Sales-tax liable on sales of manufactured goods only -- JUDGMENT (The Judgment was delivered by Syed Ali Khan, President). ---These three appeals arise out of the appellant's sales-tax assessments made for the year 1952-53, 1953-54 and 1954-55. 2. The assessee is a manufacturer of motor-car springs. In addition, he also purchased and sold motor parts not manufactured by him. The turnover of the manufactured goods in the three years amounted to Rs.26,856/-, Rs.32,243/- and Rs.58,384/-. The total turnover of Rs.1,83,165/- Rs.2,34,534 Rs.2,64,064/-, respectively. For purposes of assessments for all these years the Sales-tax Officer took into account the total turnover (of both manufactured and non-manufactured goods) although tax was levied only on sales of goods manufactured by the although tax was levied only on sales of goods manufactured goods) although tax was levied only on sales of goods manufactured by the assessee. It is common ground that for the first two years the limit of exempted turnover was Rs.36,000/- while in the third year the limit of such turnover was Rs.60,000/-. It was, therefore, the assessee's contention that since the turnover of the manufactured goods in all the years was less than the limit of exempted turnover, sales-tax was not leviable at all in the present case. The Sales-tax authorities over-ruled the assessee's objection on the ground that for purposes of assessments the gross takings of the manufactured goods have got to be taken into account. 3. Under section 8(2) of the Sales-tax Act the Central Government had the power to grant any class of manufacturer or producer exemption from the payment of the tax on goods manufactured or produced by him. In exercise of the powers so conferred the Central Government by its Notification No. 10 dated the 27th 1951, granted the following classes of manufacturer or producer exemption from the payment of tax on the goods manufactured or produced by them: '(1) A…

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