In Brief
The appellant, a cashew kernel manufacturer, challenged assessments of turnover tax under the Karnataka Sales Tax Act claiming it should be levied only on taxable turnover, not total turnover (which includes inter-state sales and exports exempt from tax). The Supreme Court upheld the lower courts' decision that Section 6-B(1) requires turnover tax to be calculated on total turnover for determining the applicable rate/slab, with deductions only as specified in the statute. The Court held that 'total turnover' serves to identify and classify dealers based on economic superiority; the actual tax liability remains only on intra-state turnover by the statutory proviso, satisfying constitutional requirements. The appeals were dismissed.
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