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TMI Blog2020 (3) TMI 583X X X X Extracts X X X X X X X X Extracts X X X X ..... ade thereunder. The total turnover obviously would include the total turnover of all the goods made by the Assessee, irrespective of the liability to pay tax thereon. If the turnover in question is exempted from payment of tax, it would nonetheless remain part of the total turnover even though it may not form part of the taxable turnover . Section 3-D of the Act as it stood prior to 01.04.1999 clearly mentioned the total turnover for applying the said flat rate of 2% tax. Even after amendment from 01.04.1999, the words total turnover have been employed in said Section 3-D of the Act - there are no merit in the argument raised by the learned counsel for the Assessee that the provisions after its substitution from 01.04.1999 should ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties and holing against the Assessee that the Assessee was not entitled to deduction of exempted turnover of the food and drinks which they served in their Club even though they had suffered levy of tax at the first point and were exempted on the second sales made by such Club within their premises to the customers and therefore, on the total turnover of the Assessee, the Assessee was liable to pay tax in terms of the 2% under Section 3-D as it existed prior to its substitution with effect from 1st April 1999 substituted by Act No.28 of 1999. The reasons assigned by the learned Tribunal in the impugned order are quoted below for ready reference: 7.We have heard the arguments of both the sides and perused the connected material records ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny of the assessment made for 1997-98, the Assessing Authority has concluded that the total turnover is liable for assessment U/S 3-D and effected revision on 31.8.01 assessing the total turnover determined levying 2% tax as the total turnover determined has exceeded ₹ 50 Lakhs. Thus, the revision made is on 31.8.01 for 1998-99, exemption claimed is disallowed and the original assessment made on 10.8.00 and the same is assessed to tax U/s 3-D levying 2% tax as the total turnover determined based on books of accounts is more than ₹ 50 Lakhs. The appellants claim for exemption U/R 6 of the TNGST Rules that the turnover representing the sales of exempted goods and second and subsequent sales of tax suffered made is eligible for exe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see Club being the second sales, only the net turnover could be considered as total turnover and that being less than the prescribed limit of ₹ 50 Lakhs, the Assessee was entitled to pay tax as per the slabs of taxation provided in Part-A of the Ninth Schedule to the Act and not at 2% as per 3-D of the Act. 3.On the other hand, the learned Special Government Pleader Mr.Mohammed Shaffiq submitted that the definition of the total turnover is given in Section 2(q) of the TNGST Act read with Rules 5 and 6 of the TNGST Rules makes it clear that the exempted turnover is also a part of total turnover and the total turnover - (minus) the exempted turnover would only reflect the net taxable turnover which is also defined in Section 2(p) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the goods sold:- (i) freight; (ii) [ ] (iii) charges for delivery; (cc) [ ..] (d) [ .] (e) all amounts for which goods are sold or purchased in the course of export of the goods out of the territory of India or in the course of import of the goods into the territory of India or in the course of inter-State trade or commerce; (f) [. ] (g) all amounts for which goods specified in First, Second and Sixth Schedules to the Act are sold or purchased by a dealer provided that the sale or purchase is not at the point of levy prescribed in the said Schedules; (h) the turnover of sales or purchases made by a dealer through his agent in respect of which tax has been paid by the agent. (i) All amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t would nonetheless remain part of the total turnover even though it may not form part of the taxable turnover . Section 3-D of the Act as it stood prior to 01.04.1999 clearly mentioned the total turnover for applying the said flat rate of 2% tax. Even after amendment from 01.04.1999, the words total turnover have been employed in said Section 3-D of the Act. We do not find any merit in the argument raised by the learned counsel for the Assessee that the provisions after its substitution from 01.04.1999 should be held to be clarificatory in nature and to apply to the period even prior to 01.04.1999 i.e. Assessment year 1997-1998 which is the assessment year involved in the present case. A substantive provision of the Act unless sp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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