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TMI Blog2014 (8) TMI 897X X X X Extracts X X X X X X X X Extracts X X X X ..... ocally, in terms of section 3(4) of the Tamil Nadu Value Added Tax Act, 2006 (hereinafter called as "the Act"), the petitioner opted to pay tax at the rate not exceeding one per cent. As per section 3(4) of the Act, such option shall be exercised by the dealer within 30 days from the date of commencement of the Act; that the dealer, whose turnover is below Rs. 50 lakhs during the previous year on or before the 30th day of April of the year, has exercised such option and for the year 2008-09, the dealer has exercised the said option within thirty days from the date of commencement of the Tamil Nadu Value Added Tax (Second Amendment) Ordinance, 2008; the proviso to section states that such dealer shall not collect any amount by way of tax or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notice issued, the petitioner submitted his objections on February 24, 2011 stating that it did not make any inter-State purchase during the assessment year 2009-10 and as the turnover was below Rs. 50 lakhs, it was entitled to opt for assessment under section 3(4) of the Act. The petitioner was also issued notices on the same day for the earlier assessment year. The petitioner states it purchased garments from other States for the earlier assessment years 2007-08 and 2008-09 for a small value only for Rs. 45,469 and Rs. 13,311, respectively. Immediately realising that it might not be entitled to the concessional levy under section 3(4) of the Act, it filed form I and claimed input-tax credit of the tax paid on its purchases. Thereafter on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 3(4) of the Act, rejecting the claim based on earlier years' results is contrary to law. Aggrieved by the same, the petitioner has come before this court. On notice, the respondents have given instructions to the Government Pleader, wherein, it has been specifically averred that the petitioner had violated conditions under section 3(4) of the Act since they had made inter-State purchase during 2007-08 and 2008-09. Considering the violations thus made, the prohibition under section 3(4) of the Act to avail of concessional levy operated against the petitioner. On instructions, it has been further pointed out that the petitioner had filed form I in respect of assessment years 2007-08 and 2008-09 seeking eligibility for input-tax credit. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt, as may be notified by the Government. Such option shall be exercised by a dealer,- (i) who commences business, within thirty days from the date of commencement of the business; (ii) whose turnover is below rupees fifty lakhs during the previous year, on or before the 30th day of April of the year for which he exercises such option; (iii) for the year 2008-09, within thirty days from the date of commencement of the Tamil Nadu Value Added Tax (Second Amendment) Ordinance, 2008: Provided that such dealer shall not collect any amount by way of tax or purporting to be by way of tax: Provided further that such dealer shall not be entitled to input-tax credit on the goods purchased by him: Provided also that the dealer who purchased good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom the date of commencement of the Tamil Nadu Value Added Tax Ordinance, 2008. The proviso to sub-section (b) states that if a dealer's turnover reached Rs. 50 lakhs during the previous year, he shall not be entitled to exercise the option for, subsequent year. Going by the, scheme of the Act, that tax is payable in respect of sales effected during the year meaning financial year starting from April, to 31st March, the previous year herein refers to the year previous to the financial year under consideration. Thus once the assessee crosses Rs. 50 lakhs in any previous year, the benefit of availing of the compounded rate for subsequent year would not be there at all. Section 3(4) of the Act refers to the entitlement of assessee to have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion, as stated by the respondent, which disentitles an assessee from getting the benefit of section 3(4) of the Act. The section states that an assessee is entitled to the benefit of compounded rate of tax on the taxable turnover of the dealer relating to second and subsequent sale and that the taxable turnover of the year shall be less than Rs. 50 lakhs. The other condition prescribed therein makes no reference at all to the previous years having inter-State sale. In fact, the reference to previous year turnover has reference only as regards the taxable turnover more than Rs. 50 lakhs, which results in the non-applicability of the provision on the claim for compounded levy. Thus on the mere ground of the petitioner having inter-State purc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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