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TMI Blog2023 (6) TMI 234X X X X Extracts X X X X X X X X Extracts X X X X ..... w: "Whether the Tax Board was justified in law in holding that the export amount is to be excluded from gross turnover for calculation of Composition Amount under 'Composition Scheme for Gem and Stones, 2006'?" 2. Since common issue is involved in all these STRs, STR No. 14/2023 is taken as lead file to peruse the facts. 3. Learned counsel for the revenue submits that the premises of the assessee were surveyed on 31.05.2016 wherein it was found that assessee has opted for 'Composition Scheme for Gem and Stones, 2006' (for short "Composition Scheme 2006") which was notified by the State Government vide Notification dated 06.05.2006. As per the Composition Scheme 2006, the dealer can opt for payment of composition amount in lieu of tax a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ual Composition amount (in Rupees) 1 Upto Rs. 2.00 lac Nil 2 More than Rs. 2.00 lac and upto Rs 10.00 lac 3,000/- 3 More than Rs. 10.00 lac and upto Rs 500.00 lac 9,600/- 4 More than Rs. 50.00 lac and upto Rs 100.00 lac 15,000/- 5 More than Rs. 100.00 lac and upto Rs 200.00 lac 21,000/- 6 Above Rs. 200.00 lac 30,000/- 5. Learned counsel for the revenue contends that the term 'annual gross turnover' would mean entire turnover and would include the amount of export sale as well and therefore would have an effect on the liability of the composition amount. Learned counsel submits that Co-ordinate Bench of this Court, in STR No. 127/2012 (titled M/s Naveen Jewellers vs. Commercial Taxes Officer; decided on 10.03.2017), in sim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount would include the amount of export sale as well. It is further submitted that unlike the case of assessee in Naveen Jewellers (supra), the assessee in this case was having both domestic sales and international/export sales. Furthermore, the judgment of Naveen Jewellers (supra) was passed under the previous tax regime of Rajasthan Sales Tax Act, 1994 (for short "RST Act"), i.e. before the RVAT Act came into force. The indefensible right to take credit is built into the RVAT Act, whereas under RST Act, which was a single point tax based regime, there was no facility of input tax credit. Therefore, there was a change in law and the judgment of Naveen Jewellers (supra), which was limited to Composition Scheme introduced under RST Act canno ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advanced by both the sides, scanned the record, and considered the judgments cited at Bar. 12. In the case in hand, following facts are noteworthy: 12.1) that the assessee was engaged in the gems and stones business and had opted for the Composition Scheme 2006; 12.2) that the assessee was engaged in both domestic sales and international/export sales; 12.3) that the assessee was paying the composition amount vis-à-vis local sale, i.e. based on the gross turnover of domestic sales, and the assessee was not including the amount of export sales in the gross turnover; 12.4) that revenue initiated proceedings against the assesse for evasion of tax because as per revenue, the assessee had to include export sales also in the gross turn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h terms and conditions as may be notified in the Official Gazette. (2) The tax in lump sum specified in sub-section (1) shall not exceed the limit of maximum tax liability as provided in sub-section (1) of section 4." 15. The specific terminology used in the Composition Scheme 2006 and Section 5 of RVAT Act, like (i) 'in lieu of tax liability'; (ii) 'sale of all kinds ... within the State'; (iii) 'gross turnover'; (iv) 'payment of tax in lump sum', are note-worthy. From the conjoint reading of notification dated 06.05.2006 and Section 5 of RVAT Act, it is abundantly clear that the composition amount as envisaged under the Composition Scheme 2006 is levied so that assessee can discharge his/her tax liability by paying a lump sum amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of RVAT Act, which substituted the RST Act, there was a change in law. The RVAT Act is based on multi point taxation with option of input tax credit, whereas the RST Act was single point taxation with no option for input tax credit; 17.2) because provision of Section 5 of RVAT Act was not considered in Naveen Jewellers (supra), which specifically states 'option for payment of tax in a lump sum'. Since the Composite Scheme 2006 stems from Section 5 of RVAT Act, the composition amount, specifically read with Article 265 of Constitution of India, cannot be understood to be anything but tax; 17.3) because the term 'gross turnover' has to be read in conjunction with 'within the State' in the Composite Scheme 2006. The legislation deliberate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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