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TMI Blog2021 (2) TMI 298X X X X Extracts X X X X X X X X Extracts X X X X ..... Curiae ORDER T.S.SIVAGNANAM, J. This writ petition has been filed challenging the order passed by the Tamil Nadu Taxation Special Tribunal, Chennai ('the Tribunal' for brevity) in O.P.No.559 of 2002 dated 12.06.2002 and to consequently direct the second respondent herein to pass orders on the application given by the petitioner dated 12.03.2002 to refund the additional sales tax collected. 2. The petitioner is a registered dealer on the file of the second respondent under the provisions of the Tamil Nadu General Sales Tax Act, 1959 (hereinafter referred to as 'TNGST Act') for the assessment year 1996- 97. The second respondent-Assessing Officer, vide order dated 10.04.1998 had levied and collected additional sales tax from the petitioner. The petitioner had approached the Tribunal in O.P.No.559 of 2002, by filing an application under Section 55 of the Act to direct the Assessing Officer to revise the assessment and refund the amount collected as additional sales tax for the assessment year 1996-97. The Tribunal rejected the application by placing reliance on the decision in the case of Siemens Ltd. vs State of Tamil Nadu [110 STC 313]. Challe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 (Mad)] has considered the legal position and held that the amendment of the Act in the course of the year prescribing different qualifying minimum taxable turnover for registered dealers and others was held to be discriminatory and was read down and the qualifying taxable turnover was to be computed of whole year and not from the date of amendment. Further, it is submitted that the decision in Siemens Ltd., was noted by the Hon'ble Division Bench in the case of State of Tamil Nadu vs National Time Co. [2011 39 VST 247 (Mad)] . 6. We have elaborately heard the learned counsel for the parties and carefully perused the materials placed on record. 7. The law on the subject has been settled by the decision in Siemens Ltd., which was taken note of by the Hon'ble Division Bench of this Court in Philips India Limited , wherein it was held as follows: 7. It is true that in the decision in question, namely Siemens Limited v. State of Tamil Nadu [1998] 110 STC 313, the Tribunal had observed: To give effect to the said intention we proceed to hold that clause (a) of sub-section (1) of section 2 of the principal Act, namely, Act 14 of 1970 is ultra vire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 lakhs and as per the original provision, the extent of such liability varied upon the taxable turnover as per the original provision. With effect from August 1, 1996, the exemption limit was raised to ₹ 100 crores and by virtue of the decision of the Tribunal, such exemption was equally applicable to all concerned. In view of the above, the contention of the learned counsel for the petitioner that there was no liability during the period April 1, 1996 to July 31, 1996 is not acceptable. 8. Even assuming that there was no liability to pay and there was no provision regarding payment of additional sales tax between April 1, 1996 and July 31, 1996, the annual turnover of the petitioner for the assessment year 1996-97 was admittedly more than ₹ 100 crores. It is immaterial that the taxable turnover for the period from August 1, 1996 to March 31, 1997 did not exceed ₹ 100 crores. Even assuming that the liability to pay additional sales tax arose only with effect from August 1, 1996, the contention that the taxable turnover after the said date alone could be considered is also not tenable. The Assessing Officer was justified in coming to a conclusion that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the present context. It has been held in [1999] 113 STC 496 (Mad.) (Kirloskar Brothers Ltd. v. State of Tamil Nadu that the provisions under Section 55 of the TNGST Act can also be availed for the purpose of rectification of assessment under the Central Sales Tax Act and the ratio of the said decision would equally apply to the assessment of additional sales tax. 8. In National Time Co. , the Division Bench took note of the decision in Siemens Ltd. and set aside the order passed by the Tribunal and remanded the matter back to the Assessing Officer to pass fresh orders keeping the taxable turnover of the respondent-assessee therein upto 31.07.1996. The operative portion of the Judgment reads as follows: 12. In the above stated background, when we consider the respective submissions of the learned counsel for the petitioner as well as the respondent, we find that the definition of the expression year under section 2(1)(t) of the Tamil Nadu General Sales Tax Act will have no implication, while applying the un-amended Section 2(1)(a) up to July 31, 1996 and the amended Section 2(1)(a) and 2(1)(aa) after August, 1 1996. 13. The definition of the expression ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on and after August 1, 1996, the payment of additional sales tax would arise only if the taxable turnover for the whole of the financial year exceeded one hundred crores of rupees and even in such a situation, while for the period up to July 31, 1996, the liability will have to be worked out as per the provision which was prevailing upto that date namely, the unamended Section 2(1)(a) and that for the period subsequent to August 1, 1996 up to March 31, 1997 for the taxable turnover generated on and after August 1, 1996 alone, the applicable rate of tax will have to be calculated. 16. To make the position more clear, for instance, in the financial year April 1, 1996 to March 31, 1997, for the period upto July 31, 1996, if the taxable turnover was ₹ 50 lakhs, for the first ten lakhs of rupees, there would be no additional tax liability, for the rest forty lakhs of rupees, the liability by way of additional tax should be calculated at the rate of 1.5% and if for the whole of the financial year, the taxable turn over exceeded ₹ 100 crores, for the remaining amount of ₹ 99.50 lakhs i.e, excluding ₹ 50 lakhs, which is relatable to the period only upto July 31 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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