1991 (7) TMI 327 - HC - VAT and Sales Tax

Summary

Issues:
1. Levy of additional sales tax for the assessment year 1977-78.
2. Levy of surcharge under the Tamil Nadu Sales Tax (Surcharge) Act, 1971, for the assessment year 1977-78.

Detailed Analysis:
1. The assessee challenged the levy of additional sales tax for the assessment year 1977-78 in Tax Case (Revision) No. 1290 of 1981. The assessing authority had levied additional tax at 0.7 per cent on the taxable turnover under the Tamil Nadu Additional Sales Tax Act, 1970. The assessee contended that the goods should be treated as "declared goods," but the assessing authority upheld the levy. The court upheld the assessing authority's decision, stating that no fault could be found with the levy of tax. The court rejected the pleas raised by the assessee, similar to those in Tax Case (Revision) No. 1291 of 1981, and dismissed Tax Case (Revision) No. 1290 of 1981.

2. In Tax Case (Revision) No. 1291 of 1981, the assessee contested the levy of surcharge under the Tamil Nadu Sales Tax (Surcharge) Act, 1971, for the assessment year 1977-78. The assessing authority had determined the surcharge as per the provisions of the Act, and the appeals before the appellate authority and the Tribunal were unsuccessful. The assessee argued that the surcharge should only be levied if the transaction was related to "declared goods," but this plea was not accepted by the authorities. The court held that the liability to levy surcharge arises when the liability to pay tax under the Tamil Nadu General Sales Tax Act, 1959, has been determined. As the goods were not treated as "declared goods" during the assessment proceedings, the benefit of the proviso to section 3(1) of the Tamil Nadu Sales Tax (Surcharge) Act was not available to the assessee. The court concluded that the orders of the authorities below did not warrant interference, and Tax Case (Revision) No. 1291 of 1981 was rejected.

In summary, both tax revision cases challenging the levy of additional sales tax and surcharge were dismissed by the court, upholding the decisions of the assessing authority, appellate authority, and the Tribunal.