TMI Blog2010 (7) TMI 933X X X X Extracts X X X X X X X X Extracts X X X X ..... first ten lakhs as provided under the proviso to sub-clause (i) of section 2(1)(a). - Tax Case (Revision) No. 743 of 2006 - - - Dated:- 8-7-2010 - IBRAHIM KALIFULLA F.M. AND SUNDRESH M.M., JJ. ORDER:- The order of the court was made by F.M. IBRAHIM KALIFULLA The assessee is the revision petitioner. The challenge is to the order of the Sales Tax Appellate Tribunal in S.T.A. No. 64 of 2001. The assessment year is 1996-97. The vital question required to be considered in this revision is, as to how to apply section 2(1)(a) of the Tamil Nadu Additional Sales Tax Act, 1970, which existed prior to Act 31 of 1996, since by Act 31 of 1996, the previous section 2(1)(a) came to be amended and after the amendment, section 2(1)(a) and 2(1)(aa) came to be introduced. Further, Act 31 of 1996 was the subject-matter of challenge before the Tamil Nadu Taxation Special Tribunal, in which the Tribunal rendered a judgment in Siemens Ltd. v. State of Tamil Nadu reported in [1998] 110 STC 313 (TNTST). The Tribunal struck down the amended section 2(1)(a) and also deleted certain words in the newly inserted section 2(1)(a) of the Tamil Nadu Act 31 of 1996. In the light of the above pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rate of additional tax in respect of such goods shall be reduced to such an extent that the tax and the additional tax together shall not exceed four per cent of the sale or purchase price of such goods. The amended sections 2(1)(a) and 2(1)(aa) were as under: Amendment of section 2. In section 2 of the Tamil Nadu Additional Sales Tax Act, 1970 (hereinafter referred to as the principal Act), in sub-section (1), (i) In clause (a), for the word 'dealer' the words 'causal trader or agent of a non-resident dealer or a local branch of a firm or company situate outside the State' shall be substituted; (ii) after clause (a) and before the proviso thereto, the following shall be inserted, namely: (aa) the tax payable under the said Act, shall in the case of a dealer including the principal selling or buying goods in this State through agents other than a casual trader or agent of a non-resident dealer or a local branch of a firm or company situated outside the State whose taxable turnover for a year exceeds one hundred crores of rupees, be increased by an additional tax calculated at the following rates, namely: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rate of tax (i) Where the taxable turnover exceeds one hundred crores of rupees but does not exceed three hundred crores of rupees 2.5 per cent of the taxable turnover (ii) Where the taxable turnover exceeds three hundred crores of rupees 3 per cent of the taxable turnover Explanation. 'Taxable turnover' for the purpose of this clause in respect of a principal selling or buying goods through agents shall be the aggregate taxable turnover of all his agents relating to the sale or purchase of the goods of such principal within the State. With the statutory provisions prevailing as above during the assessment 8 year 1996-97, the order of the assessing authority as well as that of the Appellate Tribunal has to be examined. The submission of the learned counsel appearing for the petitioner9 assessee is that since as per the Act, the expression year refers to the whole of the financial year, when once section 2(1)(a) came to be amended, the liability could be fastened only on a dealer, whose turnover exce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from August 1, 1996. Therefore at the outset, we are not persuaded to consider the said submission of the learned counsel for the petitioner. In the abovestated background, when we consider the respective submissions of the learned counsel for the petitioner as well as the respondent, we find that the definition of the expression year under section 2(1)(t) of the Tamil Nadu General Sales Tax Act will have no implication, while applying the un-amended section 2(1)(a) up to July 31, 1996 and the amended section 2(1)(a) and 2(1)(aa) after August 1, 1996. The definition of the expression year which means the financial year, is only for the limited purpose of ascertaining what is the financial year with reference to which the tax liability under the main Act as well as the additional sales tax under the Tamil Nadu Sales Tax Act is to be worked out. The mere fact that under section 2(1)(a), a reference is made to a year , the same will not in any way create any different impact, while applying the liability or the rate of tax to be worked out during the financial year. In other words, if in the very same financial year, different rates are to be worked out by virtue of prescri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve to be calculated. To make the position more clear, for instance, in the financial year April 1, 1996 to March 31, 1997, for the period up to July 31, 1996, if the taxable turnover was Rs. 50 lakhs, for the first ten lakhs of rupees, there would be no additional tax liability, for the rest forty lakhs of rupees, the liability by way of additional tax should be calculated at the rate of 1.5 per cent and if for the whole of the financial year, the taxable turnover exceeded Rs. 100 crores, for the remaining amount of Rs. 99.50 lakhs, i.e., excluding Rs. 50 lakhs, which is relatable to the period only up to July 31, 1996, the rate of tax as per the amended section 2(1)(aa) will have to be worked out. Keeping the above statutory implication relating to payment of additional sales tax as was applicable up to July 31, 1996 and after August 1, 1996, when we examine the order of the assessing authority dated March 9, 1999, in the case on hand, we find that the taxable turnover of the assessee was Rs. 31,94,415 up to July 31, 1996. The taxable turnover for the financial year is stated to have exceeded rupees one crore. But for the purpose of calculation of additional sales tax, since ..... X X X X Extracts X X X X X X X X Extracts X X X X
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