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2021 (3) TMI 11 - HC - VAT and Sales TaxValuation - inclusion of amount of total TDS deducted in the exempted turnover - entitlement of tax to be deducted at the hands of the appellant while computing the tax payable - HELD THAT:- From perusal of Rules 3(2) and (h) of KVAT Rules, it is evident that all the amounts collected by way of tax under the Act shall be deducted from the total turn over. In the instant case, the TDS has been collected from the appellant under the provisions of the Act. Therefore, the amount of TDS to the extent of ₹ 23,40,187/- cannot be allowed to be added in the total turn over and the revisional authority has rightly dropped the proceedings in respect of the deduction of tax on the aforesaid amount. However, the aforesaid aspect of the matter has not been appreciated by the Additional Commissioner of Commercial Taxes and it has been erroneously held that the amount of total TDS deducted cannot form part of the exempted turn over in the absence of such provisions of the Act and Rule. The Assistant Commissioner of Commercial Taxes failed to appreciate Rule 2(h) of the Rules. Therefore, in view of the preceding analysis, the substantial questions of law involved in this appeal are answered in favour of the appellant and against the respondent - Appeal allowed - decided in favor of appellant.
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