TMI Blog2018 (4) TMI 208X X X X Extracts X X X X X X X X Extracts X X X X ..... in the order, cannot be said to be perverse. Revision dismissed - decided against assessee. - Tax Case (Revision) No. 9 of 2018 - - - Dated:- 15-2-2018 - S. Manikumar And V. Bhavani Subbaroyan, JJ. For the Petitioner : Mr.R.Asokan For the Respondent : Mr.V.Haribabu Addl. Government Pleader ORDER ( Order of the Court was made by S. Manikumar, J. ) Tax Case Revision is filed against the order, dated 02.09.2014, passed in S.T.A.No.33 of 2007, by which, the Tamil Nadu Sales Tax Appellate Tribunal (Addl. Bench), Coimbatore-18, on the grounds, inter alia, (i) The Tribunal has failed to note that the petitioner is not liable to pay the Additional Sales Tax, since the sale turnover of by the two Principals was less than 10 crores, during the assessment year 2003-2004. (ii) The Tribunal has committed a manifest error in rejecting the letters from the two Principals to that their turnover, including the consignment sale through agents, was less than ₹ 10 crores. (iii) The Tribunal has failed to note that the sale turnover shown by the Principals was inclusive of the sales through their agents including the petitioner and since their turnover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore, in the absence of proof to show that the above consignment agents have paid the Additional Sales Tax, the principal has to pay Additional Sales Tax on the aggregate taxable turnover of all his agents in the state. 5. The Tribunal, in the above appeal, has framed the following point for consideration, Whether the Additional Sales Tax levied by the Assessing Authority amounting to ₹ 1,30,450/- and set aside by the learned first appellate authority is correct or not 6. After considering the facts and circumstances of the case and relevant provisions, the Tribunal, vide order, dated 02.09.2014 in S.T.A.No.33 of 2007, held as follows: ...The case on hand is the levy of Additional Sales Tax by the Assessing Authority on a turnover of ₹ 1,30,44,957/- at 1% and levied tax of ₹ 1,30,450/- on the finding of fact that even though the respondent-dealer were acting as agent of principal-dealers, they were not able to prove the payment of Additional Sales Tax by five principals out of elevan as provided under Section 2 (1(aa)) of the TNAST Act, 1970. Aggrieved against this levy of Additional Sales Tax, by the Assessing Authority, the dealers had prefe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e agents and certified that 3 dealers viz., Tvl.Guru Oil Mart, Arun Oil Traders and Kaleeswari Oil Mart, have not reached ₹ 10 crores taxable turnover. Then, the Assessing Authority has dropped the levy of Additional Sales Tax on the turnover of ₹ 20,69,69,529/-, however, restricted the levy on the turnover of ₹ 1,30,44,952/- and levied AST of ₹ 1,30,450/- in the original assessment order, dated 26.9.05 (filed in page no.455). The respondent(petitioner)-dealer had not produced any certificate from the respective assessment circle relating to the principal-dealers, Tvl.Thulsian Foods (P) Limited and Tvl.K.M.S.Oil Stores for the turnover of ₹ 29,78,174/- and ₹ 5,22,228/- respectively and also not proved that these turnovers are included in the turnover of the above stated principals and Additional Sales Tax paid nor filed any valid certificate from the Assessment Circle that those principals did not reach the taxable limit for levy of Additional Sales Tax. Generally, in the principal agent relationship, the agent has to issue certificate, obtained from the Assessing Officer, to the principal that he has paid all the taxes on the sales turnover of g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on record. 8. Assessment year is 2003-04. As per Section 2(1)(aa) of the Tamil Nadu Additional Sales Tax Act, 1970, as it stood during the period from 01.04.1998 to 31.10.2001, the dealer was liable to pay additional sales tax under the Tamil Nadu Additional Sales Tax Act, if the taxable turnover of the assessee exceeded ₹ 25 crores. Section 2(1)(aa) of the Tamil Nadu Additional Sales Tax Act has been amended by the Tamil Nadu Act 13 of 2001 with effect from 1.11.2001, by which, the liability for the purpose of additional sales tax was reduced to ₹ 10 crores. Thus, on and from 1.11.2001, the liability under the Tamil Nadu Additional Sales Tax Act stood attracted on a dealer, including the principal selling or buying goods, through agents, crossing the taxable turnover of ₹ 10 crores. Explanation-I to Section 2(1)(aa) of the Tamil Nadu Additional Sales Tax Act, 1970, deals with, 'taxable turnover' and the said explanation is extracted hereunder: Explanation-I: '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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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