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TMI Blog2002 (9) TMI 809X X X X Extracts X X X X X X X X Extracts X X X X ..... turnover of Rs. 3 lakhs, while passing the assessment order under section 7-E of the TNGST Act. 2.. The petitioner is a dealer under the name and style V.M.V.K. Ramasamy Nadar, Sattur, Virudhunagar District and registered under the TNGST Act, 1959 and an assessee on the file of the second respondent. The annual sales turnover of the petitioner under TNGST Act is below Rs. 10 lakhs and he is paying tax under section 7-E of the Act, since the inception of the said section from the assessment year 1996-97. The petitioner submitted an application under section 28-A to the first respondent for clarification regarding the payment of tax under section 7-E of the TNGST Act. The first respondent has issued clarification dated June 4, 2002 saying ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all small dealers under section 3(1)(b) will be defeated by the wrong clarification issued by the first respondent dated June 4, 2002. Hence the original petition. 4. Learned counsel for the petitioner Mr. M. Md. Ibrahim Ali has contended that the clarification dated June 4, 2002 issued by the first respondent is liable to be struck down as it is against very foundation of giving relief to small dealers in their turnover up to Rs. 3 lakhs during the assessment year and if such clarification is acted upon, the same will go against the very object of granting exemption to a turnover up to Rs. 3 lakhs in TNGST Act. 5.. Learned Senior Standing Counsel for the Revenue has contended that the said clarification has been issued as per the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th the provisions of sub-section (2) of section 3 or section 4, as the case may be, pay tax at the following rates, namely: Rate of tax (i) Where the total turnover does not exceed 3 per cent of the five lakhs of rupees total turnover. (ii) Where the total turnover exceeds five Rs. 15,000+5 per cent lakhs of rupees, but does not exceed ten of the total turnlakhs of rupees over in excess of rupees five lakhs: Provided that such dealer shall not be required to maintain detailed commoditywise accounts, other than purchase and sale bills and total accounts relating to monthly sales, monthly tax collection and tax payments, annual purchases and annual opening and closing stocks." 7.. From the very reading of section 7-E, it is clear th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to monthly sales, monthly tax collection and tax payments, annual purchases and annual opening and closing stocks. Such an advantage has not been given to the dealers who pay tax under section 3(1). The way in which section 7-E of the TNGST Act is couched, it is meant for specific category of dealer for paying tax while enjoying certain benefits in maintaining their accounts, which the other dealers do not enjoy. The common aspect between them is that they need not pay tax on the total turnover up to Rs. 3 lakhs. 8.. Learned counsel for the petitioner has contended that the concession of not levying tax on the turnover of Rs. 3 lakhs should be extended to the dealer who opts for payment of tax under section 7-E. Such concession has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d counsel further contended that a plain reading of the section 7-E of the TNGST Act, 1959 would show that the provisions contained in section 3(2) and section 4 of the Act should not be taken for the purpose of calculating the tax liability and there is no restriction that section 3(1)(b) should not be considered for computing the turnover under section 7-E. As we have stated supra, section 3(1)(b) and section 7-E are separate provisions and in both the provisions up to a total turnover of Rs. 3 lakhs, no tax need be paid. It is only on the total turnover of Rs. 3 lakhs and above, the question of payment of tax arises in both the cases. Section 3(1)(b) deals with a dealer who has not opted under section 7-E and paying tax under section 3(1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing of an executive order which has the effect of subverting the scheme of a quasi-judicial and judicial resolution of the lis between the State and the dealer and therefore it was held that the said section 59A of Kerala General Sales Tax Act, 1963 was violative of article 14 of the Constitution of India and is invalid. The order passed by the first respondent herein cannot be said to be an order of that nature. Section 28-A of the TNGST Act gives ample power to the Special Commissioner and Commissioner of Commercial Taxes to issue clarification on an application by a registered dealer. 12.. While considering the arguments advanced by the learned counsel for the petitioner, the impugned order of the learned Special Commissioner and C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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