Case Laws
Acts
Notifications
Circulars
Classification
Forms
Manuals
Articles
News
D. Forum
Highlights
Notes
🚨 Important Update for Our Users
We are transitioning to our new and improved portal - www.taxtmi.com - for a better experience.
⚠️ This portal will be discontinued on 31-07-2025
If you encounter any issues or problems while using the new portal,
please
let us know via our feedback form
so we can address them promptly.
Home
2004 (5) TMI 538 - HC - VAT and Sales TaxConstitutionality of Section 2(1)(a) of the Tamil Nadu Additional Sales Tax Act 1970 - Applicability of amended Section 2(1)(aa) of the Tamil Nadu Additional Sales Tax Act 1970 - Liability to pay additional sales tax for the period from April 1 1996 to July 31 1996 - Jurisdiction u/s 55 of the Tamil Nadu General Sales Tax Act 1959 for rectification - HELD THAT - It is quite well-settled that the effect of a judgment has to be examined in its totality and in the context in which it was made and not by referring to a stray sentence here or there torn totally out of the context in which such observation has been made. It has to be remembered that before the Act was amended by Act 31 of 1996 the liability to pay additional sales tax in a graded scale had been clearly laid down u/s 2(1)(a) of the Tamil Nadu Additional Sales Tax Act 1970. Only after tinkering had been made by the Legislature by amending section 2(1)(a) making it applicable to the dealers other than the dealers registered in Tamil Nadu and by introducing a new provision in the shape of section 2(1)(aa) raising exemption limit regarding the liability to pay additional sales tax so far as the registered dealers in Tamil Nadu are concerned to more than Rs. 100 crores the provision was found offensive. In other words section 2(1)(a) as it originally stood was not found offensive but section 2(1)(a) as amended by the Act 31 of 1996 was struck down and the new provision as contained in section 2(1)(aa) with required modifications was held to be applicable to all concerned. Even though the learned counsel appearing for the petitioner is correct in his submission to the effect that striking down of section 2(1)(a) did not have the effect of reviving section 2(1)(a) as it originally stood the fact remains that so long as that provision namely section 2(1)(a) of the unamended Act was in statute book the liability to pay tax as per such provision was already incurred. In other words the liability as envisaged under section 2(1)(a) as per the original Act was in existence for the period from April 1 1996 till July 31 1996. At that stage the liability was incurred as soon as the turnover exceeded Rs. 10 lakhs and as per the original provision the extent of such liability varied upon the taxable turnover as per the original provision. With effect from August 1 1996 the exemption limit was raised to Rs. 100 crores and by virtue of the decision of the Tribunal such exemption was equally applicable to all concerned. Thus the contention of the learned counsel for the petitioner that there was no liability during the period from April 1 1996 to July 31 1996 is not acceptable. It merely supplements Tamil Nadu General Sales Tax Act. It is necessary to read and construe the Tamil Nadu General Sales Tax Act and the Tamil Nadu Additional Sales Tax Act together. The observation made by the Supreme Court 1983 (2) TMI 243 - SUPREME COURT (Ashok Service Centre v. State of Orissa) in the context of Orissa Sales Tax Act and Orissa Additional Sales Tax Act is equally applicable in the present context. It has been held 1997 (8) TMI 493 - MADRAS HIGH COURT (Kirloskar Brothers Ltd. v. State of Tamil Nadu) that the provisions u/s 55 of the TNGST Act can also be availed for the purpose of rectification of assessment under the Central Sales Tax Act and the ratio of the said decision would equally apply to the assessment of additional sales tax. The writ petition was dismissed and the court upheld the liability to pay additional sales tax for the entire assessment year 1996-97 considering the taxable turnover exceeded Rs. 100 crores. The court also affirmed the applicability of Section 55 of the TNGST Act for rectification purposes.
|