TMI Blog2020 (1) TMI 889X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Authority. Therefore, taking the figures of turnovers tentatively, a prima facie satisfaction was arrived by the Assessing Authority that since the turnover of some of the products dealt with by the Assessee exceeded the prescribed limit, Section 4-A stood attracted in the case and without that tax liability being cleared by the Assessee to that effect, the Tax Clearance Certificate could not be issued to the Assessee. The said order does not call for any interference of this court in the extraordinary jurisdiction at this stage. Whether the Assessee was entitled to issuance of the Tax Clearance Certificate or not would naturally depend upon the assessment of the turnover of the Assessee finally by the Assessing Authority in accordance with the provisions of the Act, including the application of Section 4-A of the Act. Petition disposed off. - W.P.Nos.4815, 4816 and 4817 of 2000 - - - Dated:- 8-1-2020 - Dr. Justice Vineet Kothari And Mr. Justice R. Suresh Kumar For the Petitioner : Mr.N.Prasad for M/s.N.Inbarajan For the Respondents : Ms.N.Mala, Special Govt.Pleader (Pondicherry) COMMON ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vely in cigarattes (whose turnover of ₹ 2.86 Crores upto Jan 2000 exceeded the limit of ₹ 50.00 lakhs in 99- 2000) are not tenable, in view of the position explained above, The Court has upheld the levy of turnover tax on Cigaratte. To their representation, the Commissioner (CT) Pondicherry has not ordered that they are not liable to pay turnover tax on the grounds putforth by them. In view of the position explained above, they are liable to pay the turnover tax for the years 98-99 and 99-2000 and they are, therefore, hereby called upon to pay the same, immediately, together with the penal interest due for the period for which the payment was delayed, so as to enable this office to take up their request for consideration. 2. Learned counsel for the Writ Petitioner / Assessee, Mr.N.Prasad submitted that in the present Writ Petitions filed by the Assessee, the Assessee also has inter alia challenged the validity of Section 4-A of the Pondicherry General Sales Tax Act, 1967, which provides for Additional Turnover Tax at the rate of 3%. The said provision is quoted below for ready reference. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment, collection or refund of tax under other provisions of this Act. (3) Notwithstanding anything contained in Section 25, no dealer shall collect from his purchaser the turnover tax payable by him under this section. 3. Learned counsel for the Assessee has urged before us that the products like cigarattes dealt with by the Assessee were 'Declared Goods' under Section 14 of the Central Sales Tax Act, 1956 and therefore, restrictions under Section 15 of that Act would apply and the Turnover Tax under Section 4-A cannot permit the Assessing Authority to levy the total tax beyond the restricted rate of tax under Section 15 of the Act. Since Section 4-A of the Act does not provide for any such deduction and imposes Turnover Tax on all the dealers, the said provision has to be declared as ultra vires to that extent. 4. He has further submitted that the controversy with regard to the levy of Additional Duty of Excise in lieu of Sales Tax under the Additional Duties of Excise (Goods of Special Importance) Act, 1957 on tobacco products came up for consideration before the Constitution Bench of the Honourable Suprem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Union of India, the supply of luxury is nothing but the supply of goods since the goods themselves constitute the luxury. 72. So even if tobacco is an article of luxury, a tax on its supply is within the exclusive competence of the State but subject to the constitutional curbs prescribed under Article 286 read with Sections 14 and 15 of the Central Sales Tax Act, 1956 and most importantly the ADE Act of 1957 under which no sales tax can be levied on tobacco at all if the State was to take the benefits under that Act. 5. However, Ms.N.Mala, learned counsel appearing for the respondent Revenue submitted that the present Writ Petitions 4815 to 4817 of 2000 have been placed before this Bench in pursuance to a reference order passed by the learned Single Judge on 28.03.2000, upon which, by the orders of the Honourable Chief Justice on 06.04.2000, the matters are placed before the Division Bench. The note prepared by the office and approved by the Honourable Chief Justice is also quoted below for ready reference. It is most respectfully submitted that the above W.Ps.4815 to 4817 of 2000 when came up for admission before His Lor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al duties and excise, unless the Central Government, by order, otherwise directs. Thus the prohibition as regards goods suffering additional duty of excise operates on a totally different field, referable to the rights of the State to receive its share in the collection and it has no relevance at all to the State exercising its authority to tax sales or purchases under Entry 54, List II of the Constitution. Even though the assessee pointed out that the Revenue had not given the details as to whether the Union Territory of Puducherry had or had not received its share under the additional duties of excise, yet, as rightly pointed out by the learned Special Government Pleader, the counter affidavit, in paragraph 14, specifically states that the Pondicherry Administration is not getting any contribution from the additional duties of excise collected by the Central Government under the Act of 1957. In the light of the above, we do not find any ground to accept the plea of the petitioner herein on the challenge made to the notification. Consequently, we hold that the notification issued by the Pondicherry Administration is perfectly constitutional and there is no repug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns of Section 4-A of the Act, the same were not even maintainable. The ground of validity of the said provision appears to have been raised as a tangent attack just to maintain the writ petitions. The question, really if any arises, is only of the applicability and interpretation of the provisions of Section 4-A of the Act. The said provision providing for the levy of the Turnover Tax would naturally involve determination of facts and extent of turnover for applying the said provisions. 8. As we have already noted above, the present case arises on the application filed by the Assessee for seeking a Tax Clearance Certificate even when the assessment of the year concerned were not finalised by the Assessing Authority. Therefore, taking the figures of turnovers tentatively, a prima facie satisfaction was arrived by the Assessing Authority that since the turnover of some of the products dealt with by the Assessee exceeded the prescribed limit, Section 4-A stood attracted in the case and without that tax liability being cleared by the Assessee to that effect, the Tax Clearance Certificate could not be issued to the Assessee. 9. Therefore, the said order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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