TMI Blog1987 (9) TMI 394X X X X Extracts X X X X X X X X Extracts X X X X ..... he same within Andhra Pradesh, as well as to dealers outside the State. The petitioner is registered as a dealer both under the State Act, as well as the Central Act. It filed monthly returns for the months of April to December, 1981 and paid the tax thereon, but did not pay the surcharge leviable at 10 per cent on such tax, whereupon a notice dated 22nd February, 1982 was served upon the petitioner calling upon it to pay the same. The notice, inter alia, read as follows: ".....Under the provisions of the Act, you have to pay tax at the rate of 2 per cent and surcharge at 10 per cent on the turnovers from April, 1981 to December, 1981.....You are therefore hereby requested to pay the surcharge amounting to Rs. 29,842 within seven days f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h goods inside the appropriate State; and (b) in the case of goods other than declared goods, shall be calculated at the 'rate of ten per cent' or at the rate applicable to the sale or purchase of such goods inside the appropriate State, whichever is higher ..........". Sub-section (2-A) which was introduced by an Amendment Act in 1958 and substituted as a whole in 1972, however, restricts the rate of tax to a lower rate in certain circumstances. It reads thus: "(2-A) Notwithstanding anything contained in sub-section (1-A) of section 6 or sub-section (1) or clause (b) of sub-section (2) of this section, the tax payable under this Act by a dealer on his turnover in so far as the turnover or any part thereof relates to the sale of any goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act on the sale or purchase of goods, shall pay a surcharge on such tax at the rate of ten per cent of such tax: Provided that if, in respect of declared goods, the tax under section 6 and the surcharge under this section, payable by such dealer exceeds four per cent of the sale or purchase price thereof, the rate of surcharge in respect of such goods shall be reduced to such an extent that the tax and the surcharge together shall not exceed four per cent of the sale or purchase price of such goods. (2) The provisions of this Act shall apply in relation to the surcharge payable under sub-section (1) as they apply in relation to the tax payable under this Act. Explanation.-For the purposes of this section, the term 'tax under this Act' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... include surcharge payable under section 6-B of the State Act. It is further argued that the reference to turnover in the sub-section also goes to indicate that only the tax payable under section 6 of the Act was made payable on account of Central sales tax by the said sub-section, but not the surcharge. Surcharge, it is submitted, is not a tax on turnover but is a tax on tax (surcharge on tax). We find it difficult to agree with the learned counsel. The sub-section having used the words "subject to tax generally at a rate which is lower than four per cent" proceeds further to elucidate the expression "tax". The words "whether called a tax or fee or by any other name" are significant. The said words clearly indicate that the expression "t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... when sub-section (2-A) of section 8 refers to the "sales tax law of the appropriate State", it refers only to the Kerala General Sales Tax Act, 1963, but not to the Kerala Additional Sales Tax Act, 1978, and hence the tax payable under the 1978 Act cannot be levied on inter-State sales. We are, therefore, unable to see any relevance of the said decision, because, in our case, both the surcharge and the sales tax are levied by the same enactment. The next decision cited is State of Karnataka v. P.K.P. Abdul Hakeem Co. [1985] 59 STC 203 a decision of the Karnataka High Court. The question considered by the Court in this case was whether additional sales tax levied under section 6-B of the Karnataka Sales Tax Act (at the rate of 1 per cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the object and purpose underlying the said sub-section. The object of the sub-section is to bring about a uniformity in the matter of rate of tax between an intra-State sale and an inter-State sale, and not to confer the benefit of lesser tax in the case of inter-State sale. Indeed, but for the said sub-section the tax would be chargeable at a higher rate. It cannot be gainsaid that 'even the provisions of a taxing enactment have to be reasonably construed having regard to the object and purpose underlying it, and the attempt should be to achieve the underlying object. Above all, the significance of the words "whether called a tax, or fee or by any other name" has to be duly recognised and given effect to. An unreported Bench decision ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
