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TMI Blog2010 (1) TMI 1142X X X X Extracts X X X X X X X X Extracts X X X X ..... atching eggs and day old chicks through the incubator and for the said purpose, they purchase medicine, vaccine, poultry feed, etc., from other States which are covered by bills. They also sell rabbit wool to other States covered by bills. The assessee was assessed to tax under the Central Sales Tax Act, namely, for a sum of Rs. 1,35,588 in respect of empty gunny bags, tax was assessed at the rate of 3.45 per cent; for a sum of Rs. 6,600 in respect of iron scrap, tax was assessed at the rate of eight per cent and for a sum of Rs. 9,16,500 in respect of rabbit wool, tax was assessed at the rate of 3.45 per cent. However, tax was revised at the rate of 10 per cent in respect of empty gunny bags and rabbit wool in terms of section 8(2)(b) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if the same does not exceed one crore of rupees. In the present case, as the taxable turnover has not exceeded Rs. 1 crore, the assessee is entitled to the exemption for the first Rs. 10 lakhs and if that be so, the assessee is liable to pay tax at the rate of 10 per cent for the remaining amount of Rs. 58,688. Even out of the said amount, the assessee is entitled to the deletion of Rs. 6,600 representing iron scrap and for the balance amount alone, the assessee is entitled to pay tax at the rate of 10 per cent. Mr. Haja Naziruddin, learned Special Government Pleader (Taxes), would submit that in the wake of section 8(2)(b) of the Central Sales Tax Act, the Revenue is entitled to collect higher rate of tax, namely, 10 per cent as per the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... far as the second ground is concerned, even assuming that the provisions of section 2(1)(a)(i) of the Tamil Nadu Additional Sales Tax Act is made applicable to the case of the assessee, it is an admitted fact that the total taxable turnover is Rs. 10,58,688 only and that the total turnover does not exceed Rs. 1 crore. In that event, in the wake of the proviso to clause (i) of that provision, the first Rs. 10 lakhs is to be exempted and is not liable to be taxed. If that 10 lakhs rupees is exempted, the balance amount in the taxable turnover is Rs. 58,688 only, which is not in dispute, for which the assessee is liable to pay tax at the rate of 10 per cent in terms of section 8(2)(b) of the Central Sales Tax Act. However, Mr. S. Ramanathan ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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