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2021 (12) TMI 131 - HC - VAT and Sales TaxViolation of principles of natural justice - order was passed without affording an opportunity of hearing to the petitioner - inclusion of CST turnover into the VAT turnover - TNVAT Act, 2006 - HELD THAT:- Though the petitioner has an alternative remedy, no useful purpose will be served by either relegating the petitioner to the respondent or to work out the remedy before the Appellate Commissioner as the issue is one of interpreting of the provision of the two Act - the manner prescribed for the purpose of Section 21 of the TN VAT Act, 2006 is under Rule 7 of the TNVAT Rules 2007. Rule 7 as it stood on 01.01.2007 was amended with effect from 24.08.2009. A registered dealer specified in clause (a) or (b) Rule 7(1) of the TNVAT Rules, 2007, whose taxable turnover in the preceding year exceeded two hundred crores of rupees and above was required file the above returns on or before 12th of the succeeding month to the assessing authority in whose jurisdiction his principal place of business or head office was situated. Such return shall be accompanied by proof of payment of tax - This period for filing return was extended from 12th of succeeding month to the 14th of the succeeding month in the case of a registered dealer who made electronic payment of the tax vide the above amendment. In the case of other dealers making the time was extended till 22nd of the succeeding month along with proof of payment of tax. Barring the above, amendment in the year 2009 is of no significance. The “taxable turnover” under Section 2(38) under TNVAT Act, 2006 can include only the “turnover” on which a dealer was liable to pay tax under TNVAT Act, 2006as determined after making such deductions from “total turnover” and in such manner as may be prescribed for determining “total turnover”. The amounts to be deducted Rule 8(2) of TNVAT Rules, 2007 can never form part of the “taxable turnover” under Section 2 (38) of the TNVAT Act 2006 for the purpose of Section 21 of the TNVAT Act 2006 - the overlap between the CST Act, 1956 and the TNVAT Act, 2006 and the Rules made thereunder are only for the purpose of following the procedure prescribed under the latter Act for the former. Barring the above, there is no scope for including one turnover into another either for determining the tax liability or the determining the due date for filing the Returns, Section 9 of the CST and Rule made thereunder do not permit any inclusion of the turnover under one tax enactment into another. There is no merits in the impugned order - petition allowed.
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