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2010 (1) TMI 1142 - MADRAS HIGH COURTTaxability under sales tax act - Held that:- Even assuming that the provisions of section 2(1)(a)(i) of the Tamil Nadu Additional Sales Tax Act is made applicable to the case of the assessee, it is an admitted fact that the total taxable turnover is ₹ 10,58,688 only and that the total turnover does not exceed ₹ 1 crore. In that event, in the wake of the proviso to clause (i) of that provision, the first ₹ 10 lakhs is to be exempted and is not liable to be taxed. If that 10 lakhs rupees is exempted, the balance amount in the taxable turnover is ₹ 58,688 only, which is not in dispute, for which the assessee is liable to pay tax at the rate of 10 per cent in terms of section 8(2)(b) of the Central Sales Tax Act. However, Mr. S. Ramanathan has submitted that the balance taxable turnover includes the amount of ₹ 6,600 towards iron scrap and that amount also should be deducted, leaving the balance of ₹ 52,088 only to be taxed at 10 per cent. We find force in the said submission. Accordingly, we hold that the assessee is liable to pay tax at the rate of 10 per cent under the Central Sales Tax Act for the amount of ₹ 52,088. Writ petition is partly allowed.
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