Case: State Of Kerala Vs. Ramaswami Iyer &amp; Sons

1. For the period August 16, 1960 to March 31, 1961 the respondents were assessed to sales-tax under the Travancore-Cochin General Sales Tax Act, 1950, by the assessing authority, Moovattupuzha on a turnover of Rs. 14,04,732/7/6 which included Rs. 49,318/7/4 collected by the respondents from their constituents as tax on their sale transactions. The respondents paid the tax assessed and commenced an action in the Court of the District Judge, Parur for a decree for Rs. 7,577/9/1 claiming that the amount was in excess of tax lawfully due from them under the Act. The Court of First Instance decreed the claim for Rs. 7,477/9/1 with interest and proportionate costs, and the High Court of Kerala confirmed that decree

Reasoning:
The assessing authority invested with power under the Travancore-Cochin General Sales Tax Act is constituted by the Act a tribunal, which within the limits of its authority is competent to decide all questions of fact and law arising before him in the course of proceedings for assessment, and of his own jurisdiction as well. The Act sets up machinery for levy, assessment, and collection of tax. By S. 3 of the Act charge is imposed, subject to exemptions prescribed by Ss. 4, 5, and 6 upon every dealer to pay tax on his total turnover of each year. Duty to pay the tax is imposed by S. 11 (2) of the Act. Section 12 sets up the procedure of the assessing authority in making assessments and S. 13 deals with recovery of tax. A taxpayer aggrieved by an order of assessment may appeal under S. 14 against the order of assessment, and the decision of the appellate authority is by Cl. (4) subject to the power of revision conferred by S. 15 expressly declared final. Section 15 as it stood at the relevant time provided for the exercise of revisional jurisdiction by the Board of Revenue against the order of the taxing authorities - original as well as appellate. By S. 24 power is conferred upon the State Government to frame rules, setting up machinery for determination of the net chargeable turnover, for refund of tax collected in excess of true liability and for other incidental matters. The Act is therefore a complete code dealing with the levy, assessment and collection and refund of tax. It authorises investment of power in a hierarchy of authorities to administer the Act. For the purpose of making assessment of tax, the authorities have power to decide all questions arising before them, and the orders of the appellate authorities subject to the exercise of revisional jurisdiction under S. 15 are declared final. Liability to pay tax arises under and by virtue of the provisions of the Act, and the quantum of liability may be determined under the Act aloneThere was in the Travancore-Cochin, General Sales Tax Act at the material time no express provision which obliged the taxing authority to exclude from the computation of taxable turnover the amount of sales-tax collected by the dealer. The argument of counsel for the respondents that the taxing authority has infringed a prohibition imposed upon him has therefore no substance.