2013 (7) TMI 894 - HC - VAT and Sales Tax

Summary

Issues involved:
The judgment deals with the levy of additional sales tax for the assessment year 1996-97. The key questions of law raised include:
1. Whether additional sales tax can be levied if the taxable turnover is less than 100 crores.
2. Applicability of section 2(1)(aa) of the Additional Sales Tax Act, 1970 in cases where the taxable turnover is less than 100 crores.
3. The possibility of levying additional sales tax for the period from April 1, 1996, to July 31, 1996 under the Additional Sales Tax Act, 1970.

Summary:
The Revenue filed a revision against the Sales Tax Appellate Tribunal's order for the assessment year 1996-97. The issue of levy of additional sales tax in this case is settled by the decision in the State of Tamil Nadu v. National Time Co. The court held that the taxable turnover up to the date of amendment must be assessed with reference to the relevant tax rate applicable to that period. Consequently, the matter is remanded back to the assessing officer to determine the liability based on this principle. The taxable turnover for the entire year should be considered, with the turnover up to July 31, 1996, attracting liability at specified rates, and turnover beyond that date subject to amended provisions for turnovers exceeding 100 crores for the whole year.

The tax case revision is disposed of accordingly, with no costs incurred.