Amendment status not verified — confirm the current text below against the official source.
Subs. by Act 28 of 1969, Sec. 2 for and determined in the prescribed manner" (retrospectively). (h) "sale price" means the amount payable to a dealer as consideration for the sale of any goods, less any sum allowed as cash discount according to the practice normally prevailing in the trade, but inclusive of any sum charged for anything done by the dealer in respect of the goods at the time of or before the delivery thereof other than the cost of freight or delivery or the cost of installation in cases where such cost is separately charged; (i) "sales-tax law" means any law for the time being in force in any State or part thereof which provides for the levy of taxes on the sale or purchase of goods generally or on any specified goods expressly mentioned in that behalf, and "general sales-tax law" means the law for the time being in force in any State or part thereof which provides for the levy of tax on the sale or purchase of goods generally; (j) "turnover" used in relation to any dealer liable to tax under this Act means the aggregate of the sale prices received and receivable by him in respect of sales of any goods in the course of inter-State trade or commerce made during any prescribed period 2[and determined in accordance with the provisions of this Act and the rules made thereunder]; 6 CENTRAL SALES-TAX ACT,1956 SECTION 2 (k) "year" in relation to a dealer, means the year applicable in relation to him under the general sales-tax law of the appropriate State, and where there is no such year applicable, the financial year. COMMENTS Central Sales Tax Act is a special sales tax law.—There is a clear distinction between a general sales tax law that provides for levy of tax on the sale or purchase of goods generally and a special sales tax law that provides for the levy of tax on the sale or purchase of specified goods or in specified circumstances. Tax under the Central Sales Tax Act would clearly fall within the second category. l Dealer, meaning of. The Supreme Court in Joint Director of Food v. State of Andhra Pradesh, 2 held that the Joint Director of Food, Visakhapatnam—an officer of the Central Government—was proposed and to be treated and taxed as a "dealer". According to the definition of "dealer" in Sec. 2 (b) of the Central Sales Tax Act, 1956, a person will be a dealer only if he carries on business with a profit-motive, the requirements of profit-motive was absent under the Andhra Pradesh General Sales-tax Act. Evidently, the Court was referring to the definition of dealer in the Central Act before it was amended by Act 103 of 1976, doing away with the requirement of profit-motive. It was held that inasmuch as the Joint Director of Food, Visakhapatnam, had not profit-motive in undertaking the distribution of essential commodities, he cannot be treated as a dealer under the Central Act, though he would be a dealer for purposes of the State Act. 3 Applicability of the section.—In Cement Marketing Co. of India Ltd. v. Assistant Commissioner of Sates-tax, Indore. 4 it was held that the amount of freight formed part of the sale price within the meaning of this first part of the definition of that term in Sec. 2 (o) of the Madhya Pradesh General Sales-tax Act, 1958, and Sec. 2 (h) of the Central Sales-tax Act, 1956, and was rightly included in the taxable turnover of the assessee. "Sale" meaning of.—The transfer of stock from Mathura to Hodel Office can be recorded as a sale. In this connection it is made clear that the partnership firm is not a separate legal entity like limited liability company. Even before the dissolution, the partnership firm was not separated and distinct from its partners. Hence, the dissolution of the firm will not mean that some legal entity came to an end as in the case of winding-up of a limited liability company. Hence, the transfer of stock from Mathura to Hodel cannot be said to be a transfer of some other legal entity. Moreover, the transfer of stock cannot be said to be sale. Hence, the finding of the Tribunal to this extent is arbitrary and illegal and is hereby set aside. 5 Sale price—Meaning of.—By reason of the provisions of the Cement Control Order which governed the transactions of sale of cement entered into by assessee with the purchasers, the amount of freight formed part of the "sale-price" within the meaning of the first part of the definition of that term in Sec.2(h) of the Central Sales-tax Act, 1956, and was includible in the turnover of assessee. 6