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2018 (4) TMI 208 - HC - VAT and Sales TaxLiability of Additional Sales Tax - the sale turnover of by the two Principals was less than 10 crores, during the assessment year 2003-2004 - Held that - Section 2(1)(aa) of the Tamil Nadu Additional Sales Tax Act, 1970, has been amended, attracting a dealer, including the principal selling or buying goods through agents, crossing the taxable turnover of ₹ 10 crores, liable to pay additional tax. Taxable turnover, as explained in Explanation-I of the abovesaid Section, shall be the aggregate taxable turnover of all his agents relating to the sale or purchase of the goods of such principal within the State - on and from 1.11.2001, the liability under the Tamil Nadu Additional Sales Tax Act stood attracted on a dealer, including the principal selling or buying goods, through agents, crossing the taxable turnover of ₹ 10 crores. Tribunal has weighed the evidence required to be produced by the petitioner, to support his case that on their behalf, additional sales tax has been paid by the principal - Appreciation of evidence by the Tribunal and reasons recorded in the order, cannot be said to be perverse. Revision dismissed - decided against assessee.
Issues:
1. Liability of the petitioner to pay Additional Sales Tax. 2. Rejection of certificates of the Principals of the petitioner. 3. Liability of the petitioner to pay Additional Sales Tax on consignment sales turnover. 4. Direction for recovery of Additional Sales Tax with interest. Issue 1: Liability of the petitioner to pay Additional Sales Tax The case involved a Tax Case Revision filed against the order passed by the Tamil Nadu Sales Tax Appellate Tribunal, challenging the levy of Additional Sales Tax on the petitioner-dealer. The Assessing Authority determined the turnover of the petitioner and levied Additional Sales Tax. The Tribunal considered whether the petitioner was liable to pay Additional Sales Tax, especially concerning the turnover of the petitioner already being included in the turnover of the Principals. The Tribunal found that the petitioner failed to prove the payment of Additional Sales Tax by five principals, leading to the upheld levy of Additional Sales Tax by the Assessing Authority. The Tribunal's decision was based on the provisions of the TNAST Act and the requirement for agents to prove tax payment on behalf of principals. Issue 2: Rejection of certificates of the Principals of the petitioner The Tribunal rejected the certificates provided by the Principals of the petitioner, stating that the turnover, including sales by the petitioner, was less than the threshold for Additional Sales Tax. The Tribunal emphasized the need for valid proof of tax payment by principals on behalf of their agents. The Tribunal highlighted the absence of certificates from the respective assessment circles for certain principals, leading to the sustained levy of Additional Sales Tax on the turnover of the petitioner. The Tribunal's decision was based on the lack of concrete evidence to support the claim that the turnover of the petitioner was already included in the turnover of the Principals. Issue 3: Liability of the petitioner to pay Additional Sales Tax on consignment sales turnover The Tribunal analyzed the liability of the petitioner to pay Additional Sales Tax on consignment sales turnover, which was included in the total turnover of the Principals. The Tribunal referred to the provisions of the TNAST Act, highlighting the requirement for agents to prove tax payment on behalf of principals. The Tribunal emphasized the need for valid documentation to demonstrate that the turnover of the petitioner was accounted for in the turnover of the Principals for the purpose of Additional Sales Tax. The Tribunal's decision was based on the lack of sufficient proof provided by the petitioner to establish the inclusion of their turnover in the turnover of the Principals. Issue 4: Direction for recovery of Additional Sales Tax with interest The Tribunal directed the recovery of Additional Sales Tax with interest from the date of the original demand for the sustained portion of the levy. The Tribunal's decision was based on the findings regarding the liability of the petitioner to pay Additional Sales Tax and the lack of sufficient evidence to support the petitioner's claims. The Tribunal upheld the Assessing Authority's decision in part, leading to the direction for interest on the sustained portion of the Additional Sales Tax. The Tribunal's decision was in line with the provisions of the TNAST Act and the assessment of the petitioner's tax liability based on the evidence presented. In conclusion, the High Court dismissed the Tax Case Revision Petition, upholding the Tribunal's decision regarding the liability of the petitioner to pay Additional Sales Tax and the rejection of certificates provided by the Principals. The judgment emphasized the importance of valid proof of tax payment by principals on behalf of their agents and the requirement for agents to demonstrate the inclusion of their turnover in the turnover of the Principals for the purpose of Additional Sales Tax.
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