2002 (7) TMI 766 - HC - VAT and Sales Tax

Summary

Issues:
1. Challenge against the levy of additional tax under section 15-1A by Sales Tax Officer.
2. Dispute regarding the interpretation of notification under section 41 of the Bombay Sales Tax Act.
3. Calculation and validity of surcharge under section 15-1A for manufacturers with turnover exceeding Rs. 10 lakhs.

Issue 1:
The petitioner challenged the levy of additional tax under section 15-1A by the Sales Tax Officer. The Sales Tax Tribunal confirmed the order, leading to the petitioner's appeal. The court decided to address both petitions together due to the similarity of the issue. The petitioner argued that no additional tax could be levied under section 15-1A in their case.

Issue 2:
The dispute in one of the petitions related to the interpretation of a notification issued under section 41 of the Bombay Sales Tax Act. The petitioner, a partnership firm, contended that their liability was restricted to 4 paise in a rupee as per the notification. The notification exempted certain sales to the Central or State Government from a higher tax rate, limiting the liability to 4%.

Issue 3:
In another case, a petitioner challenged the levy of additional tax under section 15-1A, arguing that the surcharge exceeded the maximum liability fixed at 4% due to the notification under section 41. The court clarified that the surcharge under section 15-1A was not an additional tax but a legitimate levy applicable to all manufacturers with turnovers exceeding Rs. 10 lakhs. The court upheld the validity of the surcharge, stating that it did not violate the Act or the Constitution.

The court concluded that the provisions of section 15-1A were not ultra vires and upheld the calculation of the surcharge by the Sales Tax Officer and Tribunal. The court dismissed the writ petitions and discharged the rule without any costs.