1. The disputed turnover in this case is a sum of Rs. 2,93,013.12 and that represents a portion of the purchases of groundnuts made by the assessee within the State and sold outside the State. It is not in dispute that the sales of groundnuts were inter-State and the assessee has paid the Central sales tax on the said sales. But the dispute here is, whether the disputed turnover is liable to be included in the taxable turnover of the assessee under the Tamil Nadu General Sales Tax Act. The assessing authority, the appellate authority as well as the Tribunal have taken the view that having regard to the definitions of 'turnover', 'total turnover' and 'taxable turnover' in the General Sales Tax Act, the disputed turnover being the value of the groundnuts purchased within the State would clearly come within the definition of 'taxable turnover'. It is on that basis, the disputed turnover has been brought to charge under the Tamil Nadu General Sales Tax Act.
2. The learned counsel for the assessee contends that having regard to the provisions under Section 15 of the Central Sales Tax Act as well as the proviso to Section 4 of the Tamil Nadu General Sales Tax Act, the disputed turnover need not be included in the taxable turnover of the assessee and no tax need be paid on the same. But, in our view, a conjoint reading of those sections suggests that the assessee has to include all his purchase turnover of groundnuts in his taxable turnover and pay the tax without reference to the Central Sales Tax Act, and if and when he sells the same goods outside the State, he is entitled to get a refund of the tax paid under the Tamil Nadu General Sales Tax Act on his purchases under Section 15(b) of the Central Sales Tax Act read with the proviso to Section 4 of the Tamil Nadu General Sales Tax Act. The fact that he will be entitled to get a refund of the tax if paid by him on his purchases will not take the disputed turnover out of the category of taxable turnover. It may be that it is an idle formality for the revenue to insist on the disputed turnover being included in the taxable turnover and demand a tax thereon and subsequently refund the same on a proper application made by the assessee under Section 4. But so far as the statutory provisions go, the conclusion is inescapable that the disputed turnover is part of the taxable turnover on which tax has to be paid. Therefore, we do hot feel inclined to interfere with the decision of the Tribunal. The tax case is dismissed. There will be no order as to costs.