9911796707
TMI Blog2005 (2) TMI 791X X X X Extracts X X X X X X X X Extracts X X X X ..... additional tax. On this ground, the assessment order is vitiated as additional tax has not been deducted and the direction of the Commissioner on the basis of which assessment order has been passed is contrary to the statutory provision. 3.. The stand of the State on the other hand is that the petitioner is a dealer in IMFL and the said product is notified for the multi-point levy of tax under section 11(3) of the Act read with entry No. 2 in annexure II-B of the Act. The adjustment of tax on each point of levy of tax will be made in terms of rule 10(2)(b) of the Bihar Sales Tax Rules, 1983 (hereinafter referred to as "the Rules"). According to section 11(3) of the Act, sales tax is to be charged on the sale price and the sales tax paid at the earlier stage is to be deducted from the tax as calculated. The additional tax is levied under section 6 of the Act and it is a self-contained provision and its provision will apply in view of the non obstante clause excluding the operation of sections 11, 12, 13 and 21 at the rate and in the manner with regard to sales and purchase as provided in the said section. The circular dated 12th July, 1994, contained in annexure 1 to the writ ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ximum amount of tax permissible under section 15 of the Act, no additional tax shall be payable under this section; (ii) where the additional tax under this section together with the tax payable under section 3 or section 4 would exceed the maximum amount of tax permissible under section 15 of that Act, the additional tax shall stand reduced to such amount as, together with the tax payable as aforesaid, equals the said maximum amount. (2) The State Government may, by notification and subject to such conditions and restrictions as it may impose, exempt from the levy of additional tax gross turnover in respect of any goods or class or description of goods. Section 11(3). Where by a notification published under sub-section (1) the State Government specifies in respect of any goods or class or description of goods that the sales tax shall be levied at more than one point, or on all the points, the amount of sales tax paid at each preceding stage of sale shall be adjusted against the amount of tax payable at each subsequent stage of sale in the prescribed manner. Section 21. Taxable turnover. (1) For the purpose of this Part the taxable turnover of a dealer shall be that part of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any action which is or may be taken under section 49, be deducted from the gross turnover of the selling dealer but shall be included in the taxable turnover of the purchasing dealer." "Rule 10(1)(b): Less the amount of tax paid at the immediately preceding stage of sale/purchase. Rs." 6.. No doubt the tax includes both tax and additional tax as per definition under section 2(x) of the Act but section 11 deals with the point or points in the series of sales at which the sales tax shall be levied and sub-section (3) of section 11 clearly provides that when there is multi-point of levy of sales tax, the amount of sales tax paid at each preceding stage of sale shall be adjusted against the amount of tax payable at each subsequent stage of sale in the prescribed manner. Section 11(3) of the Act does not speak deduction of tax paid at subsequent stage. Section 21 of the Act which defines taxable turnover also provides that the deduction is to be made from the amount of sales tax actually collected and it does not speak of additional tax or tax. This apart, no doubt, rule 10(1)(b) which deals with the manner of adjustment of tax in respect of goods notified under sub-section (3) of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... law of the appropriate State". It appears that the Kerala Additional Sales Tax Act was enacted to levy additional sales tax and dealing with the said matter, the apex Court held that additional sales tax levied under the Additional Sales Tax Act is also sales tax of the same category as in the original Act and accordingly it was held that the assessees are liable to pay sales tax at the rate including the additional sales tax in respect of their inter-State sale under the Central sales tax assessment orders. 11.. In our view, the said case does not help the petitioner for the reason that there the question for consideration was as to whether the additional tax chargeable under the separate Act should be also treated as sales tax. The apex Court held so for the simple reason that the State Government has only power to levy sales tax and additional tax is part of the same even if there is separate Act levying separate sales tax. The point involved in the said case was quite different. 12.. Similarly, in the case of Sunagar Bros. [1993] 89 STC 532 (SC), the question was as to whether the undisputed additional tax is also to be paid along with sales tax at the time of filing of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
