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2015 (1) TMI 898 - HC - VAT and Sales TaxLevy of additional sales tax - Whether in the facts and circumstances of the case, the Tribunal is legally right in holding that the additional sales tax would be attracted for the assessment year 1996-97, since the taxable turnover did not exceed 100 crores as per amended provision of section 2(1)(aa) - Held that - Both sides agree that the issue as regards the levy of additional sales tax in respect of the assessment year 1996-97 is covered by the decision of this court in the case of State of Tamil Nadu v. National Time Co. reported in 2010 (7) TMI 842 - MADRAS HIGH COURT that after taking the taxable turnover for the entire year, the taxable turnover up to the date of amendment has to be assessed with reference to the relevant tax rate therein applicable to the period. - Matter remanded back - Decided in favour of Revenue.
Issues:
Interpretation of additional sales tax liability for the assessment year 1996-97 under amended provision of section 2(1)(aa). Analysis: The High Court of Madras addressed the issue of additional sales tax liability for the assessment year 1996-97 in a revision against the Sales Tax Appellate Tribunal's order. The main question of law was whether the Tribunal was correct in holding that additional sales tax would apply since the taxable turnover did not exceed 100 crores as per the amended provision of section 2(1)(aa). Both parties agreed that a previous court decision in the case of State of Tamil Nadu v. National Time Co. was relevant. The court clarified that the taxable turnover for the entire year should be considered, and the liability up to the period before the amendment should be assessed based on the applicable tax rate. The court directed the matter to be remanded back to the assessing officer for recalculating the liability in accordance with the court's decision. The turnover up to July 31, 1996, should attract liability at the rates specified before the amendment, while turnover beyond that date should be assessed based on the amended provision for taxable turnover exceeding 100 crores for the whole year. Consequently, the tax case revision was disposed of with no costs awarded.
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