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TMI Blog2010 (7) TMI 842X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the first ten lakhs as provided under the proviso to sub-clause (i) of Section 2(1)(a). - Tax Case (Revision)No.2316 of 2008 - - - Dated:- 8-7-2010 - F. M. Ibrahim Kalifulla And M. M. Sundresh,JJ. For the Petitioner : Mr. Haja Naziruddin Spl. Government Pleader (T) For the Respondent : Mr. P. Rajkumar ORDER (Order of the Court was made by F. M. Ibrahim Kalifulla, J.) The State is the revision petitioner. Challenge is to the order of the Sales Tax Appellate Tribunal in M.T.S.A.No.567 of 2000. The assessment year is 1996-97. 2. The vital question required to be considered in this revision is, as to how to apply Section 2(1)(a) of the Tamil Nadu Additional Sales Tax Act, 1970, which existed prior to Act 31 of 1996, since by Act 31 of 1996, the previous section 2(1)(a) came to be amended and after the amendment, Section 2(1)(a) and 2(1)(aa) came to be introduced. Further, Act 31 of 1996 was the subject matter of challenge before the Tamil Nadu Taxation Special Tribunal, in which the Tribunal rendered a judgment in Siemens Limited v. State of Tamil Nadu reported in Vol. 110 (1998) S.T.C. 313. The Tribunal struck down the amended Section 2(1)(a) and also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of the sale or purchase price of such goods. 5. The amended Sections 2(1)(a) and 2(1)(aa) were as under:- Amendment of Section 2:- In section 2 of the Tamil Nadu Additional Sales Tax Act, 1970 (hereinafter referred to as the principal Act), in sub-section (1)-- (i) in clause (a), for the word dealer the words casual trader or agent of a non-resident dealer or a local branch of a firm or company situate outside the State shall be substituted; (ii) after clause (a) and before the proviso thereto, the following shall be inserted, namely:- (aa) The tax payable under the said Act, shall in the case of a dealer including the principal selling or buying goods in this State though agents other than the casual trader or agent of a non-resident dealer or a local branch of a firm or company situated outside the State whose taxable turnover for a year exceeds one hundred crores of rupees, be increased by an additional tax calculated at the following rates, namely:- i. Where the taxable turnover exceeds one hundred crores of rupees but does not exceed three hundred crores of rupees Rate of Tax 2.5 percent of the taxable turnover ii. Where the taxable turnove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxable turnover of all his agents relating to the sale or purchase of the goods of such principal within the State. 8. With the statutory provisions prevailing as above during the assessment year 1996-97, the order of the Assessing Authority as well as that of the Appellate Tribunal has to be examined. 9. The submission of the learned Special Government Pleader was that since section 2(1)(a) as it originally stood prior to amendment, was very much in force up to 31.7.1996, as the said provision came to be amended by introducing Sections 2(1)(a) and 2(1)(aa) on and from 1.8.1996, the liability of the respondent-assessee for payment of additional sales tax has to be worked out based on the provisions, both unamended upto 31.7.1996 and as amended based on the Siemens case on and after 1.8.1996 which were in force during the relevant period. The further contention of the learned Special Government Pleader is that the definition of the expression year in the Tamil Nadu General Sales Tax Act, though means the 'financial year', the same will not in any way affect the authority of the Assessing Officer to determine the tax liability as per the prevailing rate, which was a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year, is only for the limited purpose of ascertaining what is the financial year with reference to which the tax liability under the main Act as well as the Additional Sales Tax under the Tamil Nadu Sales Tax Act is to be worked out. The mere fact that under Section 2(1)(a), a reference is made to a year , the same will not in any way create any different impact, while applying the liability or the rate of tax to be worked out during the financial year. In other words, if in the very same financial year, different rates are to be worked out by virtue of prescription of such different rates, due to statutory amendments, the only exercise to be carried out would be to ascertain the period for which the different rates of tax are to be worked out. In our considered view, such prescription of different rates in that financial year will not in any way affect the very basis of the liability created. Once we steer clear of the said position, we do not find hurdle at all in bifurcating the financial year in the case of any assessee, while applying the un-amended section 2(1)(a) upto 31.7.1996 and the liability after its amendment on and after 1.8.1996, for the purpose of calculating the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax as was applicable upto 31.7.1996 and after 1.8.1996, when we examine the order of the Assessing Authority dated 28.1.1998, in the case on hand, we find that the taxable turnover of the respondent - assessee was Rs.54,97,880/- up to 31.7.1996. The taxable turnover for the financial year is stated to have exceeded rupees one crore. But for the purpose of calculation of additional sales tax, since for the whole of the financial year, the taxable turnover did not exceed one hundred crores, there would be no necessity to make any further calculation for the period beyond 31.7.1996. The Assessing Authority calculated the additional sales tax at the rate of 2% on the taxable turn over for the whole of the year. 18. The learned Special Government Pleader fairly pointed out that since the unamended provision was very much in force upto 31.7.1996, the calculation of additional sales tax would have to be made by the Assessing Authority for the taxable turnover which was prevailing only upto the period 31.7.1996 and for the period subsequent to 1.8.1996, the liability would have been assessed, if at all the taxable turn over upto the end of the financial year exceeded one hundred crores ..... X X X X Extracts X X X X X X X X Extracts X X X X
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