M/S. GEORGE OAKES (P.) LTD. vs STATE OF MADRAS

The Supreme Court upheld the constitutional validity of the Madras General Sales (Definition of Turnover and Validation of Assessments) Act, 1954, stating that amounts collected as sales tax by sellers are deemed to be part of their turnover under Entry 54 of List II of the Constitution. The Court clarified that the definition of 'turnover' includes the aggregate amount for which goods are sold, including any sales tax passed on to the buyer. The judgment reaffirmed that the legislature has the competence to enact such provisions, thus validating the impugned Act.