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2014 (8) TMI 1212 - HC - VAT and Sales TaxClaim of deduction from the total turnover - Rejection on the ground that though sales tax was not charged separately, the bills revealed that the dealer had charged the cost of goods including sales tax and not collected tax separately and in terms of Explanation (1-A) to Section 2 (r) of the Tamil Nadu General Sales Tax Act, 1959 - Whether on the facts and in the circumstances of the case the Tribunal was right in law in explaining the scope of (1-A) of Section 2 (r) of TNGST Act that if sale price is shown in the books of accounts, it is sufficient to get deduction amounts even though the sale invoice contains lump sum amount inclusive of tax without charging the tax elements separately? HELD THAT:- In this case, admittedly, the respondent/assessee had raised a common ground that the form of the sale bill adopted by them is uniform all over India and the rate of sale is inclusive of all taxes. The sale bill mentions the sale price as inclusive of all taxes. It was further pleaded by the assessee that the assessee had maintained details of the sale, i.e., value of goods and tax paid separately in their account books. They are therefore entitled to the benefit of exclusion of tax component from the total turnover even in terms of Rule 5-B (a) of the TNGST Rules - in the explanation, the intentment of the statute is that any amount charged by the dealer by way of tax separately, without including the same in the price of the goods bought or sold, shall not be included in the turnover. This is to mean that tax collected will not be included in the turnover. There is no specification or indication in Explanation (1-A) that tax collected should be shown separately in the bill and only then it shall be excluded in the turnover. Revision dismissed.
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