9911796707
TMI Blog1982 (12) TMI 163X X X X Extracts X X X X X X X X Extracts X X X X ..... otton. With respect to a turnover of Rs. 9,50,201.57, it showed the Central sales tax collected by it separately in the bills. The authorities have, in the light of the proviso to section 8A(1), taken into account only the net turnover for the purpose of levying the Central sales tax. With respect to the turnover of Rs. 76,71,405.75 however the petitioner did not show the Central sales tax separately in its bills, but claimed deduction on account of Central sales tax in accordance with the formula contained in section 8A(1). Its contention was that irrespective of the fact whether the turnover is shown to be inclusive of Central sales tax or not, it is entitled to such deduction. This has been negatived by the authorities including the Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , namely: (a) the amount arrived at by applying the following formula: rate of tax x aggregate of sale prices ----------------------------------------------------100 plus rate of tax. Provided that no deduction on the basis of the above formula shall be made if the amount by way of tax collected by a registered dealer in accordance with the provisions of this Act has been otherwise deducted from the aggregate of the sale prices....................................." Section 8A was introduced by Amendment Act No. 28 of 1969 with retrospective effect from 5th January, 1957. Earlier to the Amendment Act, rule 11(2) of the Central Sales Tax Rules provided for a similar deduction. Before we deal with the principle underlying section 8A(1), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral sales tax is levied and collected. For the purpose of separating or deducting, as it may be called, the Central sales tax component from the aggregate sale price, in cases where the Central sales tax is not otherwise deducted, section 8A prescribed a formula, viz., rate of tax x aggregate of sale prices ----------------------------------------------------- 100 plus rate of tax. The proviso makes it clear that the above formula shall not apply if the amount collected by way of Central sales tax by a dealer has been otherwise deducted from the aggregate of sale price. The language as well as the object underlying the formula makes it clear that it applies only where Central sales tax forms part of the aggregate sale price and has, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e sale price, there is no occasion for applying the formula. This is not a case where we are adding any words or reading any words of our own into the statute. Even in the case of a taxing statute, as in the case of any other statute, the object of interpretation is to find out the intention of the Parliament or the legislature, as the case may be, having regard to the language employed. Judged from this angle, we see no ground to accept the interpretation urged by Mr. Dasaratharama Reddi. We are of the opinion that the Tribunal was right in holding that inasmuch as the petitioner has failed to prove that the turnover of Rs. 76,71,405.75 includes Central sales tax, the formula contained in section 8A cannot be applied. For the above reaso ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
