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2021 (3) TMI 891 - MADRAS HIGH COURTAssessment of turnover - Slabs of tax - petitioner claimed that they had to be taxed at 3.6%, the Assessing Officer, the First Appellate Authority and the Tribunal rejected the stand taken by the assessee on the ground that the local rate of tax on the goods dealt with by the petitioner was 3% and after adding surcharge and additional sales tax, the rate of tax would come to 5.1% and since this rate of tax was more than 4%, the turnover had to be assessed at 10% - HELD THAT:- In terms of the circular dated 29.4.1993, if the local rate of tax is 3% and the company is a small company with inter-state sales turnover less than ₹ 10 lakhs, the additional sales tax is '0'. The Tribunal was of the view that the turnover could not be split up, which appears to be not correct in the light of the said circular, which makes it clear that the initial ₹ 10 lakhs turnover of the dealer could not be subjected to tax. Hence, we are of opinion that such benefit should accrue to the petitioner dealer. The orders passed by (i) the Assessing Officer; (ii) the First Appellate Authority and (iii) the Tribunal are set aside and the matter is remanded to the Assessing Officer with a direction to give the benefit of the amendment by the Act 23 of 1993 by not levying additional sales tax on the first ₹ 10 lakhs of the petitioner's turnover for the subject assessment year namely 1994-95 - Petition allowed in part.
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