A. V. FERNANDEZ versus THE STATE OF KERALA

Citation: [1957] 1 S.C.R. 837 · Decided: 02-04-1957 · Supreme Court of India · Bench: NATWARLAL HARILAL BHAGWATI · Disposal: Dismissed

Cited by 2 judgment(s) · cites 1 · see the full citation network in Lexace

Judgment (excerpt)

S.C.R. 
SUPREME COURT REPORTS 
A. V. FERNANDEZ 
v. 
THE STATE OF KERALA 
(BHAGWATI, 
JAGANNADHADAS,-
JAFEK IMAM, 
GovINDA MENON and J. L. KAPUR JJ.) 
837 
Sales Tax-Assessment-Gross and net turnover-Purchase of 
copra-Sale of oil both inside and outside the State-Deductions 
-Assessable turnover-Constitution of India, Art. 28(r..Travancore-
Cochin General Sales Tax Act, 1125 (Act Xi of 1125 M.E.), ss. 2(i) 
(k), 3, 2(r..Travancore-Cochin General 
Saks Tax 
Rules, 1950, 
"· 7(k), 20(2). 
The business of the appellant consisted in the purchase of 
copra, manufacture of cocoanut oil and cake therefrom and sale of 
oil and cake to parties inside the State of Travancore-Cochin and 
sale of oil to parties outside the State. 
Before the coming into 
force of the Constitution of India, under 
the 
provisions of the 
Travancore-Cochin General Sales Tax Act, 1125, and the rules 
made thereunder, for the pus poses of assessment to sales tax, the 
appellant was entitled to include in his gross turnover the total 
value of the oil sold by him whether inside the State or outside 
the State and to deduct therefrom the whole of the value of the 
copra purchased by him. 
Sub.iequently, in 1951, the Act was 
amended by the addition of s. 26 which, inter alia, provided : 
"Notwithstanding anything contained in this Act. . . . a tax on tl:ie 
sale or purchase of any goods shall not, after the 31st day ot 
March, 1951, be imposed where such sale or purchase takes place 
in the course of inter-State trade .... ". 
For the year 1951-1952, 
the Saks Tax Officer assessed the appellant to sales tax on a net 
assessable turnover by taking the value of the whole of the copra 
purchased by him, adding thereto the respective values of tile oil 
and the cake sold inside the State and deducting only the value 
of the copra corresponding to the oil sold inside the State. It was 
contended for the appellant that in the calculation 
of 
the 
net 
tusnover, he was entitled to include the total value of the oil sold 
by him, both inside and outside the State, and deduct thuefrom 
the total value of the copra purchased by him, and further 
that, 
under the 
·crriding provision of the Act under s. 26, he was 
entitled to have th 
value of the oil sold 
outside the State 
clcch 1 ctcd. 
Held, that the calculation made by the Sales Tax Officer of 
the net tll&nover was correct. 
The non-obstante provision contained in s. 26 of the Act has 
the effect of taking transactions relating to inter.State trarle out 
of the purview of the Act and they arc cxduded in the calculation 
' 
1957 
A.pn1 2. 
838 
SUPREME COURT REPORTS 
[1957] 
1957 
of the gross turnover as well_ as the ner turnover on v.'hich sales 
tax can be assessed. 
A. V. Fmiamk< 
v. 
Asrvani Kumar Ghosh v. Arabinda Bose, (1953) S.C.R. I, 
T~ Stale of K1rala relied 
011. 
BhagwaJi J. 
CIVIL APPELLATE JupJSDICTION : Civil 
Appeal No. 
232 of 1955. 
Appeal under Article 132(1) of the Constitution of 
India from the Judgment and Order dated November 
24, 1954, of the former Travancore-Cochin High Coun 
in Original Petition No. 53 of 1954. 
T. N. St<brama11ia Iyer and R .. Ga11apathy Iyer. for 
the appellant. 
K. S. Krishnaswamy Iyengar and Sardar Bahadt<r, 
for the respondent. 
1957. April 2. The Judgment of the Court was 
delivered by 
BHAGWATI 
J.-This appeal 
with a certificate 
of 
fitness under Art. 132(1) of the Comtitution is directed 
against the order of the High Court of Travancore-
Cochin dismissing the Original Petition No. 53 of 1954 
filed bv the appellant under Art. 226 for quashing the 
order of the Sales Tax Officer, 2nd Circle, Quilon, assess-
ing him to sales tax on a net assessable turno1·cr of 
Rs. 7,54,144-8-4 for the year 1951-52 
(!st April, 1951 
to 31st March, 1952) and for issuing proper directions 
to 
the 
Sales 
Tax 
Authorities 
to 
assess 
the 
same 
according to law. 
The 
appellant is 
a registered 
manufacturer of 
cocoanut oil and cake who has obtained a certificate of 
registration in Form VI as per sub-r. (i) of r. 20 of the 
Travancore-Cochin General Sales Tax Rules, 1950. The 
business of the appellant for the purposes of th.is appeal 
consisted in the purchase of copra, manufacture 
of 
cocoanut oil and cake and sale of the sarne to parties 
inside the State of Travancore-Cochin and sale of the 
oil to parties outside· the State. 
In the year 1951-52, the appellant purchased copra 
of the value of Rs. 7,16,048-1-4 and after manufactur-
ing oil therefrom in his oi

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