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TMI Blog2021 (12) TMI 131X X X X Extracts X X X X X X X X Extracts X X X X ..... panied by proof of payment of tax - This period for filing return was extended from 12th of succeeding month to the 14th of the succeeding month in the case of a registered dealer who made electronic payment of the tax vide the above amendment. In the case of other dealers making the time was extended till 22nd of the succeeding month along with proof of payment of tax. Barring the above, amendment in the year 2009 is of no significance. The taxable turnover under Section 2(38) under TNVAT Act, 2006 can include only the turnover on which a dealer was liable to pay tax under TNVAT Act, 2006as determined after making such deductions from total turnover and in such manner as may be prescribed for determining total turnover . The amounts to be deducted Rule 8(2) of TNVAT Rules, 2007 can never form part of the taxable turnover under Section 2 (38) of the TNVAT Act 2006 for the purpose of Section 21 of the TNVAT Act 2006 - the overlap between the CST Act, 1956 and the TNVAT Act, 2006 and the Rules made thereunder are only for the purpose of following the procedure prescribed under the latter Act for the former. Barring the above, there is no scope for including one turnover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Court, the petitioner filed a reply dated 13.05.2019 which has culminated in the impugned Assessment Order dated 19.07.2019. In the impugned order, the respondent has held as follows:- Rule 7 of the TNVAT Act, 2006 stated that a registered dealer specified in clause (a) or (b), whose taxable turnover in the preceding year is two hundred crores of rupees and above, shall file the above returns on or before 12th of the succeeding month to the assessing authority in whose jurisdiction his principal place of business or head office is situated. Such return shall be accompanied by proof of payment of tax. The Dealer himself accepted that their total turnover exceeds 200 crores if CST sales taken into account. But the contention of the dealer is CST Sales will not be taken to to account for calculating ₹ 200 crores. Neither in TNVAT Act or in TNVAT Rule specifies that CST turnover not taken into account for arriving the total turnover for filing returns. Hence the reply of the dealer is not accepted and overruled and confirm the proposal Hence interest under Section 42 (3) of the Act for belated payment of taxes is levied as under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itioner submits that the turnover under the CST and TNVAT cannot be clubbed for the purpose of Rule 7 of the TNVAT Rules, 2007. He has also drawn attention to the definition of taxable turnover under Section 2(38), the definition of total turnover under Section 2(40) and the definition of turnove r under Section 2(41) of the TNVAT Act, 2006 and the definition of Sale Price under Section 2(h) and turnover in 2(j) of the Central Sales Tax Act, 1956 (hereinafter referred to as CST Act, 1956) 11. The learned counsel for the petitioner submits that though for the purpose of assessment under CST Act, 1956 the procedure prescribed under TNVAT Act, 2006 is adopted, the two turnover and assessments are independent of each other and there is no scope for overlapping or including the turnover into the other for the purpose of Section 21 of the TNVAT Act, 2006 and Rule 7 of the TN VAT Rules, 2007 and therefore submits that the impugned order is liable to be quashed for the aforesaid reason apart from being cryptic, non-speaking and unreasoned. 12. It is submitted that even on first principles of law and on a plain reading of the definitions and the scheme of the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any portion of such a turnover is liable to tax. In other words, the Act clearly contemplates the turnover arising as a result of the interstate sales ought to also be taken into account for calculating total turnover. 20. This is clear from the use of the phrase turnover in all goods of a dealer at all places of business in the State , in Section 2(40) of TNVAT Act, 2006 meaning all sales effected from any place of business in the State irrespective of whether they are intra state or interstate sales, and the phrase whether or not, the whole or any portion of such turnover is liable to tax . 21. It is submitted that Section 2(38) defines taxable turnover to mean turnover liable to be taxed as determined after making such deductions from the total turnover in such manner as may be prescribed. In other words, taxable turnover can be arrived at only after making such deductions as already prescribed under the statute. It is further submitted that Rule 8(2) is the relevant rule which prescribes the manner and lays out the deductions which are permissible from the total turnover in order to arrive at the taxable turnover. A combined reading of Rule 8(2), Rule 8(2)(a) a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titioner s taxable turnover (including both under TNVAT Act and CST Act) is greater than 200 crores and as a result the petitioner should have filed his returns before the 12th of the succeeding month. 27. It is submitted that as far as taxation cases are concerned, an assessee can come before the Hon ble High Court only on very specific grounds namely, violation of Principles of Natural Justice and violation of fundamental rights. This has been reiterated in a decision of the Hon ble Supreme Court in Assistant Collector of Central Excise, Chandan Nagar, West Bengal Vs. Dunlop India Ltd. and others , 1985(1) SCC 260 and in Union of India Vs. Satyawati Tandon, 2010(8) SCC 110 and in Authorized Officer, State Bank of Travancore and other Vs. Mathew K.C , 2018(3) SCC 85 and in The Assistant Commissioner of State Tax Vs. Commercial Steel , C.A.No.5121 of 2021, order dated 3.09.2021. 28. Therefore, as far as the writ jurisdiction is concerned, the petitioner cannot come before this Hon ble High Court without exhausting his alternative remedy available under Section 51 of the TNVAT Act. This was reiterated in another judgment of this Hon ble High Court where the very ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and proof of payment of tax. The tax under this Section shall become due without notice of demand to the dealer on the last date of the period for filing return as prescribed The tax under this Section shall become due without any notice of demand of the dealer on the date of receipt of this return or on the last date of the period for filing return as prescribed, whichever is later . 36. The manner prescribed for the purpose of Section 21 of the TN VAT Act, 2006 is under Rule 7 of the TNVAT Rules 2007. Rule 7 as it stood on 01.01.2007 was amended with effect from 24.08.2009. 37. Relevant portions of Rule 7 of the TNVAT Rules, 2007 relevant portions are reproduced below for the purpose of answering the above question of law below:- TNVAT Rules,2007 w.e.f. 01.01.2007 7 .Filing of returns (1) (a) Every registered dealer liable to pay tax under the Act, other than a dealer who opted to pay tax under subsection (4) of section 3 or section 6 or section 8 including agent of a non-resident dealer and casual trader, shall file return for each month in Form I on or before 20th of the succeeding month, to the assessing authority in whose jurisdiction his p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quarter on or before 20th of the month succeeding the quarter along with proof of payment of tax. (5) Every dealer registered under the Act shall file return in duplicate: Provided that such category of dealers as may be directed by the Commissioner shall file returns electronically. (6) If a dealer receives or returns in any year any amount due to price variation, he shall within thirty days from the end of the year submit a return in Form N to the assessing authority. (7) Every registered dealer who is not liable to pay tax under the Act, shall file return for each year in Form I-I on or before the 20th day of May of the succeeding year showing the actual total turnover in respect of all goods dealt with by him. Provided that for the year 2007-2008, the return shall be filed on or before the 31st day of December 2008. 8)* In case of dealers making electronic payment of the tax, the dealers whose taxable turnover in the previous year is two hundred crores of rupees and above, shall file the returns on or before 14th of the succeeding month along with proof of payment of tax and the others shall file the above returns on or before 22nd of the su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nover Turnover : It means the aggregate amount for which goods are bought or sold, or delivered or supplied or otherwise disposed of in any of the ways referred to in clause (33), by a dealer or through another, on his own account or on account of others whether for cash or for deferred payment or other valuable consideration, provided that the proceeds of the sale by a person of agricultural or horticultural produce, other than tea and rubber (natural rubber latex and all varieties and grades of raw rubber) grown within the State by himself or on any land in which he has an interest whether as owner, usufructuary mortagagee, tenant or otherwise, shall be excluded from his turnover. Total Turnover : It means the aggregate turnover in all goods of a dealer at all places of business in the State, whether or not, the whole or any portion of such turnover is liable to tax. 42. Thus, for the purpose of determining the date for filing return, it is the turnover on which the tax is liable to be paid. It is not dependent on the total turnover of a dealer. Whole or part of the such total turnover may or may ..... X X X X Extracts X X X X X X X X Extracts X X X X
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