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2016 (9) TMI 869 - PUNJAB AND HARYANA HIGH COURTLevy of surcharge on amount of tax paid - works contract - Haryana Value Added Tax Act, 2003 - Whether on the facts and in the circumstances of the case, the Ld. Tribunal was justified in upholding the levy of additional tax as surcharge leviable on the taxable turnover even in the case of works contractor who has opted for lump sum tax? - Held that: - the decision in the case Govind Saran Ganga Saran v. Commissioner of Sales Tax and others [1985 (4) TMI 65 - SUPREME Court] is relied upon. It was opined that four components are: (i) taxable event; (ii) taxable person; (iii) rate of tax and (iv) measure or value for which rate of tax is to be applied. In the absence of any of the components, the levy may be struck down. Taxable event for levy of additional tax under Section 7A of the VAT Act is on taxable turnover, is also evident from the fact that the retailers opting for payment of lump sum tax have been excluded from the levy. As provided for in Rule 52 of the Rules, in the case of retailers, taxable turnover is determined only then the amount of tax is calculated. Whereas in none of the other categories of the dealers opting for payment of tax on lumpsum basis, the taxable turnover is calculated. One of the important component on taxation being missing namely taxable turnover in the case of dealers opting for payment of tax on lump sum basis, levy of additional tax under Section 7A of the VAT Act cannot be sustained. Levy of additional tax and interest withheld - petition disposed off - decided in favor of petitioner.
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