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TMI Blog2011 (3) TMI 1772X X X X Extracts X X X X X X X X Extracts X X X X ..... reported the taxable turnover at at 30,25,02,122/-. The taxable turnover upto 31.10.2001 was ₹ 12,14,60,758/-. As per Section 2(1)(aa) of the Tamil Nadu Additional Sales Tax Act, 1970, as it stood during the period from 01.04.1998 to 31.10.2001, the dealer was liable to pay additional sales tax under the Tamil Nadu Additional Sales Tax Act, if the taxable turnover of the assessee exceeded ₹ 25 crores. Section 2(1)(aa) of the Tamil Nadu Additional Sales Tax Act was amended by the Tamil Nadu Act 13 of 2001 with effect from 1.11.2001, that the liability for the purpose of additional sales tax was reduced to ₹ 10 crores. Thus, on and from 1.11.2001, the liability under the Tamil Nadu Additional Sales Tax Act stood attracted o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al sales tax for the period from 1.4.2001 to 31.10.2001 did not arise. On an Original Petition filed challenging the notice, the Tamil Nadu Taxation Special Tribunal, by its order dated 28.04.2003, upheld the contention of the assessee and held that for the period 1.4.2001 to 31.10.2001, the turnover was to be assessed as per Act 23 of 1998, that only when the taxable turnover exceeded ₹ 25 crores, that the liability arose for payment of additional tax for the period 1.4.2001 to 31.10.2001; that as per the amendment made under Act 13 of 2001, effective from 1.4.2001, when the taxable turnover, for the purposes of liability, was fixed at ₹ 10 crores, and the assessee's turnover did not cross ₹ 25 crores, the applicable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rior to the amendment under Act 31 of 1996. From 01.04.1996 to 31.7.1996 under the unamended provision, the liability to additional sales tax was fixed when the taxable turnover crossed ₹ 10 lakhs. Under the amendment made under Act 31 of 1996 which amended Section 2(1)(a) and 2(1)(aa) with effect from 1.8.1996, the taxable turnover was fixed at ₹ 100 crores and above for the purpose of attracting the liability to additional sales tax. The assessee contended therein that the liability to additional sales tax would arise only if and when the taxable turnover exceeded ₹ 100 crores in the assessment year. As the taxable turnover did not exceed ₹ 100 crores, there would be no liability at all. This Court referred to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... over of ₹ 100 crores. Even in such a situation, for the period upto 31.7.1996, the liability would have to be worked out as per the provision prevailing upto that date, viz., the unamended Section 2(1)(a), and for the subsequent period covered by amendment, the taxable turnover covering the period 1.8.1996 to 31.3.1997, would go for taxation at the applicable rate. Thus on the facts of the case, this Court pointed out that the taxable turnover for the unamended period upto 31.7.1996 was ₹ 24,72,032/- and the taxable turnover for the entire year exceeded ₹ 1 crore. As per the unamended law existing upto 31.7.1996, the liability would arise if the taxable turnover for the financial year exceeded ₹ 10 lakhs. However, po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ear. Having regard to the above, the Tribunal held that for the period 1.4.2001 to 31.10.2001, the turnover has to be assessed when the taxable turnover exceeded ₹ 25 crores at 1.5% of the taxable turnover and with effect from 1.11.2001, the slab has to be followed as per the amendment under Act 13 of 2001, when the taxable turnover exceeded ₹ 10 crores i.e., at 1% of the taxable turnover and where the taxcable turnover exceeded ₹ 25 crores and did not exceed ₹ 50 crores, the taxable turnover was assessable at the rate of 1.5% of the taxable turnover. Going by the decision of this Court, taking the entire year's turnover, the liability upto the date of amendment will have to be worked out at the rate prevailing u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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