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TMI Blog2018 (3) TMI 1366X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 3(5) of the Tamil Nadu General Sales Tax Act, 1959 [in short, TNGST Act ] at the rate of 1 % of Rs. 82,56,954/-. The said writ petition came to be dismissed on 07.08.2009 as not maintainable, on the ground that an effective alternate appellate remedy is available and challenging the legality of the said order, the present writ appeal is filed. 2.This Court vide order dated 09.10.2009, while admitting the writ appeal has observed that This Writ appeal is admitted only on the question of liability of turnover to an extent of Rs. 82,56,954/- assessable under the provisions of Additional Sales Tax Act, barring that other issued do not fall for consideration before this Court and also granted interim orders. 3.The facts briefly narrat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in which the purchase turnover of Rs. 82,56,954/- was also taken into consideration for the purpose of arriving the taxable turnover under the provisions of Tamil Nadu Additional Sales Tax Act. According to the appellant / writ petitioner, the respondent has committed an error in taking into consideration the purchase turnover which was subjected to tax at the rate of 1%, for the reason that those goods were not used for the declared purpose and it is the taxable turnover only at the hands of the seller who sold the granules to them. 3.4.The appellant / writ petitioner had also filed their objections on 14.08.2008, taking a specific stand that the purchase turnover of Rs. 82,56,954/- will not be liable for Additional Sales Tax, as it is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pondent took a stand that the taxable turnover had exceeded 10 crores and prayed for dismissal of the writ petition. 6.The learned Judge after taking note of the rival submissions and materials placed, found that the petitioner is having an effective alternate remedy and as such the writ petition under Article 226 of the Constitution of India is not maintainable and citing the said reason, dismissed the writ petition vide impugned order dated 07.08.2009 and challenging the legality of the same, the writ petitioner has filed this writ appeal. 7.As already pointed out, this Court has admitted the writ appeal only on the question of liability of turnover to an extent of Rs. 82,56,954/- assessable under the provisions of Additional Sales Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IV which says that Taxable turnover for the purpose of this clause does not include the turnover of resale, taxable under Section 3-H of the said Act and would further submit that they have also paid the additional sales tax at the rate of 1% of Rs. 82,56,954/- and as such, the levy of 1% of Rs. 82,56,954/- is wholly unsustainable and since it is against the express provisions of the statute, the appellant / writ petitioner need not avail alternate remedy and prays for interference. 10.The learned counsel appearing for the appellant / writ petitioner in support of his submission, has placed reliance upon the decision rendered in Vol. 105 STC 202 (Eagle Flask Industries Limited Vs. Commercial Tax Officer and another) and another judgment re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacture purpose and they were resold. Thus, the petitioner has contravened the provisions under Section 3(3) of the Act. Hence, the said turnover has been assessed to tax at 1% which is in accordance with statute 14.Similar issue arose for consideration before the Tamil Nadu Taxation Special Appellate Tribunal reported in Vol. 105 STC 202 (cited supra), wherein an argument was put forth on behalf of the petitioner / assessee therein that the value of the raw materials purchased for manufacturing of end-product ie.,Rs.22,65,828/- is not a turnover of the petitioner who is the manufacturer but it is the turnover of the registered dealer from whom the manufacturer purchased the raw materials and component parts. It is relevant to extract p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decision rendered by the Tribunal and observed as follows in paragraph No.12: " 12.The said decision was said to have become final and conclusive. Inasmuch as there is no challenge to the order of the Special Tribunal, the reasoning of the Tribunal passed on different set of expressions used in the proviso to clause (b) of Section 3(3) and Subsection 4 to Section 3 was well justified. We also fully concur with the conclusion of the Special Tribunal on the interpretation of Sec (2) of the Tamil Nadu Additional Sales Tax Act vis-a-vis Section 3(4) of Tamil Nadu General Sales Tax Act as regards the payment of additional sales tax." 16.Ultimately, the Division Bench had sustained the stand of the appellant therein and held that no additiona ..... X X X X Extracts X X X X X X X X Extracts X X X X
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