TMI Blog2004 (5) TMI 538X X X X Extracts X X X X X X X X Extracts X X X X ..... tional tax shall be payable under this item for the first ten lakhs of rupees of the taxable turnover. (ii) Where the taxable turnover exceeds one 2 per cent of the crore of rupees but does not exceed five taxable turnover crores of rupees. (iii) Where the taxable turnover exceeds five 2.25 per cent of the crores of rupees but does not exceed ten taxable turnover crores of rupees. (iv) Where the taxable turnover exceeds ten 2.5 per cent of the crores of rupees but does not exceed taxable turnover three hundred crores of rupees. (v) Where the taxable turnover exceeds 3 per cent of the three hundred crores of rupees. taxable turnover." 2.. The aforesaid provision was amended by Act 31 of 1996 and in place of the expression dealer, the words "a casual trader or agent of a non-resident dealer or a local branch of a firm or company situate outside the State" was substituted. The amending Act also provided for insertion of clause (aa) after clause (a) to the following effect: "2. Levy of additional tax in the case of certain dealers.-(1)(aa) The tax payable under the Tamil Nadu General Sales Tax Act, 1959 (Tamil Nadu Act 1 of 1959) (hereinafter in this section referred to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e burden of additional sales tax to the consumers and the reference to prosecution, shall stand unaltered. So far as section 2(1)(aa) as amended by Tamil Nadu Act 31 of 1996, the following words shall stand deleted, as obnoxious: (1) The words 'in this State' after the words, 'principal selling or buying goods' in section 2(1)(aa) as well as in Explanation to section 2(1)(aa). (2) The words 'other than a casual trader or agent of a nonresident dealer or a local branch of a firm or company situated outside the State' in section 2(1)(aa). If the above directions are carried out the exemption granted up to rupees one hundred crores will be equally applicable to all dealers...." 5.. Now, the facts. The petitioner was assessed to sales tax under the Tamil Nadu General Sales Tax Act for the assessment year 1996-97 on a total turnover of Rs. 147,31,85,717 and a taxable turnover of Rs. 134,31,10,139. Initially the assessing officer levied Reported as Siemens Ltd. v. State of Tamil Nadu [1998] 110 STC 313 (TNTST). additional sales tax on a taxable turnover of Rs. 41,85,25,152 for the period from April 1, 1996 to July 31, 1996, even though taxable turnover for the assessment year was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me effective from August 1, 1996 and the taxable turnover of the petitioner between the period August 1, 1996 to March 31, 1997 was less than Rs. 100 crores, there was no question of paying any additional sales tax during the aforesaid period. 7.. It is true that in the decision in question, namely Siemens Limited v. State of Tamil Nadu [1998] 110 STC 313, the Tribunal had observed: "To give effect to the said intention we proceed to hold that clause (a) of sub-section (1) of section 2 of the principal Act, namely, Act 14 of 1970 is ultra vires and should stand deleted. We make it clear that we are striking down only clause (a) of section 2(1)." The aforesaid observation of the Tribunal considered in isolation, supports the contention of the petitioner to the effect that there was no provision attracting liability to pay additional sales tax before August 1, 1996. However, as rightly observed by the Special Tribunal under the impugned order, the said observation made in [1998] 110 STC 313 (Siemens Ltd. v. State of Tamil Nadu) has to be understood in the context in which such observation has been made. It is quite well-settled that the effect of a judgment has to be examined i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... between April 1, 1996 and July 31, 1996, the annual turnover of the petitioner for the assessment year 1996-97 was admittedly more than Rs. 100 crores. It is immaterial that the taxable turnover for the period from August 1, 1996 to March 31, 1997 did not exceed Rs. 100 crores. Even assuming that the liability to pay additional sales tax arose only with effect from August 1, 1996, the contention that the taxable turnover after the said date alone could be considered is also not tenable. The assessing officer was justified in coming to a conclusion that the taxable turnover for the period between April 1, 1996 and March 31, 1997 being more than Rs. 100 crores, the petitioner was liable to pay additional sales tax even as per the amended provision as contained in section 2(1)(aa). 9.. In either view of the matter, the contention raised is unacceptable. 10.. Learned Senior Counsel has contended that under the impugned proceedings reference has been made to section 55 of the TNGST Act for the purpose of effecting rectification, but jurisdiction under section 55 is not available to be exercised as the matter relates to Tamil Nadu Additional Sales Tax Act, 1970. This submission ove ..... X X X X Extracts X X X X X X X X Extracts X X X X
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