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2020 (3) TMI 583 - HC - VAT and Sales TaxScope of the term 'Total Turnover' - Entitlement for deduction of exempted turnover of the food and drinks which is served in the Club - exemption on the second sales made by such Club within their premises to the customers - HELD THAT:- The concept and definition of total turnover, exempted turnover and taxable turnover are distinct in the Sales Tax Law and these terms are separately defined in the definition caluses of the Act and the Rules made thereunder. The total turnover obviously would include the total turnover of all the goods made by the Assessee, irrespective of the liability to pay tax thereon. If the turnover in question is exempted from payment of tax, it would nonetheless remain part of the "total turnover" even though it may not form part of the "taxable turnover". Section 3-D of the Act as it stood prior to 01.04.1999 clearly mentioned the "total turnover" for applying the said flat rate of 2% tax. Even after amendment from 01.04.1999, the words "total turnover" have been employed in said Section 3-D of the Act - there are no merit in the argument raised by the learned counsel for the Assessee that the provisions after its substitution from 01.04.1999 should be held to be clarificatory in nature and to apply to the period even prior to 01.04.1999 i.e. Assessment year 1997-1998 which is the assessment year involved in the present case. A substantive provision of the Act unless specifically made retrospective by the Legislature cannot, by a deeming fiction, be construed to be a retrospective provision. As far as the words "total turnover" is concerned, there are no doubt that the "total turnover" would include even the exempted turnover. Since obviously the total turnover of the Assessee in question for the Assessment Year 1997-98, 1998-99 was beyond the prescribed limit of ₹ 50 Lakhs viz., being ₹ 72,34,527/- and ₹ 82,56,668/- as quoted above, we have no doubt that the learned Tribunal and the authorities below were justified in not applying the Section 3-D of the Act to the present case. There are no merits in the present petition - petition dismissed.
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