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2015 (8) TMI 791 - HC - VAT and Sales TaxLevy of Surcharge – manufacture and sale of tractors and three wheelers - Industrial unit holding exemption from tax – Tribunal held that even when appellant was exempted unit as per entitlement certificate, still every year tax has to be calculated on taxable turnover and then it has to be exempted within exemption entitlement – Further that surcharge was leviable on tax payable and shall also be added to amount of tax for which exemption entitlement was there – Held that:- Section 5(1C) of PGST Act provides for levy and collection of surcharge on taxable turnover of dealer payable by him under Act – For purposes of determining "taxable turnover", deductions as admissible under section 5(2) of PGST Act and rule 29 of Rules, 1949 were to be allowed – In absence of any specific provision which confers any right on assesse whereby surcharge on taxable turnover would not be reduced from its exemption limit in case of exempted unit, assesse was not entitled to claim such benefit – Thus, tax and surcharge payable every year on taxable turnover would form part of its exemption entitlement – Tribunal noticed that assesse had failed to file any list to show that there was sale of three-wheelers and therefore as per section 5(1C) of PGST Act, no such surcharge was leviable – There was no material to show that finding recorded by Tribunal was perverse or erroneous – Appeal dismissed – Decided against Assesse.
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