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TMI Blog2018 (2) TMI 197X X X X Extracts X X X X X X X X Extracts X X X X ..... ansquare I Assessment Circle, Chennai. They were assessed on a total are taxable turnover of Rs. 12,40,538/- for the assessment year 2008-09 under TNVAT Act, on self assessment basis. Subsequently, on verification of assessment file, it was noticed that the dealers filed Form K return and paid tax at 0.5% as per Section 3(4) of the TNGST Act. Since the dealers have not exercised their option to pay tax, at 0.5%, as per the amended Act, within the stipulated time, the Assessing Officer by order dated 07.10.2010, revised the assessment, levying tax, at 4% on the said turnover of Rs. 12,40,538/-. 3. Aggrieved by the order, the dealer filed appeal before the Appellate Deputy Commissioner (CT)-I, Chennai, following the judgment reported in 31 V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r submitted that the Tribunal has failed to consider that when there is substantial change in the provisions of the Act consequent on the amendment 49/2000, filing of option is mandatory. 8. Learned Additional Government Pleader (Taxes), further submitted that the Tribunal has erred in holding that in as much as the dealer had submitted form K return, the question of exercising option within 30 days from 18.06.2008 would not arise, since the provision stipulates that such option shall exercised within the stipulated time, as per the Amendment Act. The Tribunal has also failed to consider that in view of the substantial change, opinion to be exercised is mandatory and such option should be exercised by the dealer irrespective of the fact wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2006. At the time of introduction of the Act there is no provision to exercise their option to pay tax u/s 3(4) in each year. Hence, the appellant had filed his option for the year 2006-07. In the absence of such provision as each yearthe appellant had paid the tax u/s 3(4) for the year 2008-09 also further the Act amended in the middle of the year is not aware by the appellant. If an amendment made in the Act the Assessing Officer has to issue notice to the dealer who has paid compounding tax to file their option immediately. It is not done by the Assessing Officer. Further the amendment made in December 2008 will not attract with effect for 01.04.2008. The Customs, Excise and Service Tax Appellate Tribunal, Ahmadabad held that an amendm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t be entitled to Input Tax Credit on the goods purchased by him. (*) Notified as half a per cent by G.O.Ms.No.2 dated 1st January 2007 of CTR Department. Amendment 49/08 with effect from 18.06.2008 Section 3 (4):- Notwithstanding anything contained in sub-section (2), but subject to the provisions of sub-section (1), every dealer, who effects second and subsequent sales of goods purchased within the State, whose turnover relating to taxable goods, for a year, is less than rupees fifty lakhs, may, at his option, instead of paying tax under sub-section (2), pay a tax, for each year on his (*) (turnover relating to taxable goods) at such rate not exceeding one per cent, as may be notified (**) by the Government. Such option shall be exerci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... seven days from the date on which such turnover has so reached. (2) [Such dealer is liable to pay tax under Sub-Section (2) on all his sales of rupees fifty lakhs and above] and he is entitled to the Input Tax Credit on the purchases made from the date, and on the stock available with him the purchases of which he has been made within ninety days before the date, on which such turnover has reached rupees fifty lakhs: Provided that such dealer whose turnover has reached rupees fifty lakhs during the previous year shall not be entitled to exercise such option subsequent years. (2) These words have been substituted by Section 2 of the Tamil Nadu Amendment Act 27 of 2011, from a date to be notified, by the words Such dealer may pay a tax for e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sales Tax Appellate Tribunal (Additional Bench), Chennai, we are of the view that the reasoning of the both the Authorities, cannot said to be manifestly illegal, warranting interference. Act has been amended in the middle of the Financial Year. It cannot be given retrospective effect. Tax has been paid, even before amendment to the Act, with effect from 18.06.2008. Besides, he has been paying tax by submitting Form-K, as per the rule 3(4) of the Tamil Nadu Value Added Tax Act, 2006. Submissions of Form K, is an inference of exercising option. 15. In the light of the above discussion, we are not inclined to interfere with the decision. Hence, instant Tax Case Revision is dismissed. No costs. On the facts and circumstances of the case the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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