C.S.P. Singh, J.
1. The Additional Judge (Revisions), Sales Tax, has referred the following question for our opinion :
Whether, on the facts and circumstances of the case, the dealer was assessable under Section 18 of the U. P. Sales Tax Act, when his purchases were of Rs. 5,360 in a period of four months in this year?
2. The assessee started a new business from 20th December, 1968. Up to 31st March, 1969, he made purchases of the value of Rs. 5,360 and effected sales of Rs. 2,220. A question arose as to whether the assessee was liable to be taxed as his turnover during this period was less than Rs. 12,000, which was the minimum limit provided by Section 3 of the Act. The Sales Tax Officer, however, brought the turnover to tax. An appeal filed, failed. The revising authority, however, set aside the assessment on the ground that the turnover of the assessee did not reach the minimum taxable limit provided for under Section 18 of the Act. Section 18(2) and (3) of the Act, as it stood in the relevant year, may be extracted:
(2) Every dealer commencing business during the course of an assessment year whose average estimated monthly turnover for the remainder of the year is not less than one-twelfth of Rs. 25,000 or of such larger amount as may be notified under Sub-section (2) of Section 3 or whose turnover during such period is liable to tax under Sub-section (2) of Section 3 shall, within 30 days from the expiry of the month in which business was commenced, give notice of the fact to the assessing authority, and shall submit a statement of his turnover at such intervals, within such period in such form and verified in such manner as may be prescribed.
(3) If the assessing authority, after such enquiry as it deems necessary is satisfied that the return or returns submitted under Sub-section (1) or (2) are correct and complete, and that the average monthly turnover is not less than the amount computed in accordance with Sub-section (1) or (2), as the case may be, or the turnover of the dealer is liable to tax under Sub-section (3) of Section 3 it shall assess the dealer on the total turnover shown in the return or returns.
3. Section 18(3) thus empowers the Sales Tax Officer to tax the turnover in case it exceeds the average monthly turnover computed in accordance with Section 18(2). In the present case, if the turnover of sale is only taken into account, that is less than Rs. 1,000; but if the average of purchases is taken into account that exceeds Rs. 1,000. In order to see as to whether the turnover of purchases can be taken into account for purposes of Section 18(2), we will have to refer to the definition of 'turnover' in Section 2(i), which is to the following effect:
(i) 'Turnover' means the aggregate amount for which goods are supplied or distributed by way of sale or bought or sold by a dealer, either directly or through another, on his account or on account of others, whether for cash or deferred payment or other valuable consideration.
4. It is apparent from the definition that the amount for which the goods are bought also comes within the sweep of the word 'turnover'. This being so, as the assessee's purchases were to the tune of Rs. 5,360 between 20th December, 1968, and 31st March, 1969, the average monthly turnover was obviously in excess of Rs. 1,000, and he was liable to be taxed.
5. We, accordingly, answer the question in the affirmative in favour of the department and against the assessee. As none has appeared to oppose the reference, there will be no order as to costs.