9911796707
TMI Blog1995 (11) TMI 389X X X X Extracts X X X X X X X X Extracts X X X X ..... Andhra Pradesh General Sales Tax Act, 1957 and also under the Central Sales Tax Act, 1956. The State Legislature has introduced an amendment to the Andhra Pradesh General Sales Tax Act by Act 18 of 1985 with effect from July 1, 1985, according to which definition 2(r) was introduced by which total turnover in all goods of trader in all places of business in the State, whether or not the whole or portion of any such turnover is liable to tax should be taken into consideration. In view of this amendment, the second respondent who is the assessing authority imposed additional tax on the turnover of the petitioner-company in view of section 5-A of the Act. Section 5-A empowers the respondents to levy additional tax. As per section 5-A, addition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s within the State and additional tax liability is decided on the basis of the total quantum of business of a dealer. For the purpose of determining the tax liability of any dealer, total turnover is being taken into consideration, but tax is not imposed on the interState sales as such. Additional tax under the Act is not being fixed on inter-State transactions, but the inter-State sale turnover is being taken into account to determine the quantum of business of the dealer. Therefore, the amended definition is not unconstitutional and cannot be declared as illegal. Sri A.T.M. Rangaramanujam, the learned counsel for the petitioner, submits that the first respondent has no legislative competence to levy tax on inter-State sales and the firs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is prohibited and it is only the Parliament that can make a law in that regard. We must make it clear that the additional tax under section 5-A is not being levied on the sales other than local sales taxable under the Andhra Pradesh General Sales Tax Act. The learned counsel is not right in submitting that the sales falling within the purview of section 38 or article 286 are liable to additional tax by virtue of the impugned provision. The only question is whether for the purpose of calculation of rate of additional tax, the turnover based on inter-State sales could be included or not. A similar question arose before the Supreme Court in Hoechst Pharmaceuticals Ltd. v. State of Bihar [1984] 55 STC 1; AIR 1983 SC 1019. Before the Supre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le making a law for the levy of a surcharge under entry 54 of List II of the Seventh Schedule to take into account the total turnover of the dealer within the State and provide, as has been done by sub-section (1) of section 5 of the Act, that if the gross turnover of such dealer exceeds Rs. 5 lakhs in a year, he shall, in addition to the tax, also pay a surcharge at such rate not exceeding 10 per centum of the tax as may be provided. The liability to pay a surcharge is not on the gross turnover including the transactions covered by article 286 but is only on inside sales and the surcharge is sought to be levied on dealers who have a position of economic superiority. The definition of 'gross turnover' in section 2(j) of the Act is adopted n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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