9911796707
TMI Blog1996 (10) TMI 448X X X X Extracts X X X X X X X X Extracts X X X X ..... ble turnover of Rs. 4,24,46,290. By the impugned notice dated March 21, 1996, issued under section 16 of the Tamil Nadu General Sales Tax Act, 1959, the assessing officer stated that the petitioner had violated the declarations issued by them in form XVII in respect of a turnover of Rs. 12,59,56,406 being the value of the raw materials/component parts purchased against form XVII declaration. The petitioner was called upon to explain as to why in addition to concessional rate of tax at 3 per cent already paid a tax at 2 per cent should not be recovered under section 3(4) of the Tamil Nadu General Sales Tax Act, 1959. The petitioner was also informed that since the turnover of the petitioner exceeded ten lakhs of rupees they are also liable t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rchased for the purpose specified in the declaration but disposes of such goods in any other manner, shall pay the difference of tax payable on the turnover relating to sale of such goods at the rate prescribed and three per cent: Provided also that the dealer purchasing the goods maintains a separate stock account for each of the goods purchased by him showing such particulars as may be prescribed: (4) Where any dealer, after availing the concessional rate of tax under subsection (3), does not sell the goods so manufactured, but despatches them to a place outside the State either by branch transfer or by transfer to an agent, by whatever name called, for sale, or in any other manner, except as a direct result of sale or purchase in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here is no dispute. The petitioner admits that liability. 6.. The dispute in the instant case is only as regards liability to pay additional sales tax as proposed in the impugned notice. The Tamil Nadu Additional Sales Tax Act, 1970, came into force on 1st of April, 1970. Section 2 reads as follows: "The tax payable under the Tamil Nadu General Sales Tax Act, 1959 (Tamil Nadu Act 1 of 1959) shall, in the case of a dealer whose taxable turnover for a year exceeds ten lakhs of rupees be increased by an additional tax calculated at the following rates, namely: (i)................... (ii) Where the taxable turnover exceeds one crore 2 per cent of the of rupees but does not exceed five crores of taxable turnover." rupees. 7.. The mai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so purchased". 9.. Since the petitioner has violated the declaration in form XVII, rightly the liability is imposed on him to pay the balance of 2 per cent tax on the value of the goods purchased by the petitioner which went into the manufacture of the end-product. The words "taxable turnover" defined under section 2(p) reads as follows: " 'Taxable turnover' means the turnover on which a dealer shall be liable to pay tax as determined after making such deductions from his total turnover and in such manner as may be prescribed." 10.. In the instant case when various registered dealers in the State of Tamil Nadu sold component parts/raw materials to the petitioner, it is their duty and responsibility to include such sale value in their ..... X X X X Extracts X X X X X X X X Extracts X X X X
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