TMI Blog2014 (2) TMI 913X X X X Extracts X X X X X X X X Extracts X X X X ..... es that the tax or taxes under (section 3 or 4) shall be levied on the taxable turnover of the dealer. In determining the taxable turnover, the amounts specified in the clauses shall, subject to the conditions specified therein, be deducted from the total turnover of a dealer. Invoice No.5/8.3.93 shows the cost of the cargo DAP separately and other charges separately and that transaction has been effected based on the agreement dated 18.12.1992. This is also not disputed by the authority. Invoice Nos.1 to 4 are only made for other purposes and not for the purpose of filing the form A1 return - Nevertheless, these invoices have not been suppressed and they have been shown to the authority as cancelled and therefore, the question of relyin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tandardisation, bagging, loading and unloading charges, transport costs were added separately and 100% total value was shown as 7,170.00 per Metric Tonne. The said invoice was cancelled and thereafter, the respondent issued revised invoices in the following manner: Bill No.2/2-1-93 24148.500 MT DAP Rs.17,31,44,745.00 Bill No.3/8-3-93 24001.800 MT DAP Rs.17,20,92,248.55 Bill No.4/8-3-93 23947.315 MT DAP Rs.17,17,02,248.55 Bill No.5/8-3-93 23947.315 MT DAP Rs.14,55,72,135.78 2.2. In Bill No.5/8-3-93, the actual quantity that was supplied as 23,947.315 Metric Tonne was shown and the amount was noted as Rs.14,55,72,135.78. After verifying the A1 re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itions specified therein, be deducted from the total turnover of a dealer:- * * * * * * Rule 6(c). all amounts falling under the following three heads when specified and charged for by the dealer separately, without including them in the price of the goods, sold:- (i) freight; (ii) ..... Rule 6(c)(iii). charges for delivery." 4.1. The said plea was rejected by the Assessing Officer and demand as above was made and the appeal was preferred to the Appellate Assistant Commissioner (C.T), Tirunelveli. He allowed the appeal in part, but concurred with the order of the Assessing Officer insofar as the levy on the price inclusive of the charges made separately without giving deduction to the cost towards cost of empty bags, stevedori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, transport costs, were shown separately. Therefore, the Appellate Tribunal, taking note of the subsequent agreement and the final revised Invoice and the clear indication of price with regard to cargo and other charges separately, came to the conclusion that the Assessing Officer was not correct in including the other charges towards price as of inclusive and therefore, set aside the order levying tax on Rs.2,63,32,368 at 3% and also penalty. The Tribunal also rejected the plea with regard to the excess levy of penalty collection under Section 22 of the TNGST Act on the premise that 4% sales tax as against 3% was collected. Taking into consideration the decision of this Court in State of Tamil Nadu v. K.Mohamed Ibrahim Sahib reported in 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p) of the TNGST Act makes it clear that "Taxable turnover" means the turnover on which a dealer shall be liable to pay tax as determined after making such deductions from his total turnover and in such manner as may be prescribed. 9. Rule 6 of the TNGST Rules, clearly provides that the tax or taxes under (section 3 or 4) shall be levied on the taxable turnover of the dealer. In determining the taxable turnover, the amounts specified in the following clauses shall, subject to the conditions specified therein, be deducted from the total turnover of a dealer. 10. Rule 6(c) and 6(c)(iii) provide that all amounts falling under the following three heads when specified and charged for by the dealer separately, be deducted without including the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he collects such amount, the assessing authority may, after giving such person or dealer a reasonable opportunity of being heard, by order, in writing impose upon him by way of penalty a sum, which shall be, - (i) where the excess amount has been collected in the bona fide belief that it had to be collected, one hundred per cent of the amount collected; (ii) where the excess amount has been collected wilfully and knowing that it was not due to be collected, one hundred and fifty per cent of the amount collected: Provided that no proceedings under this sub-section shall be commenced after a period of five years from the date of order of the final assessment by the assessing authority: Provided further that no prosecution for an offe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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