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TMI Blog2023 (6) TMI 234X X X X Extracts X X X X X X X X Extracts X X X X ..... not to be imposed save by authority of law) of Constitution of India, no tax can be levied or collected except by authority of law. Further, as per Article 286 (Restrictions as to imposition of tax on the sale or purchase of goods) of Constitution of India, no State law can impose tax on supply of goods or services outside the State or in the course of import or export of goods or services outside the territory of India. In these circumstances, the contention of the Revenue that gross turnover would include export sale as well cannot be accepted as that would tantamount to permitting State to collect tax on exports, which is constitutionally impermissible. This Court is of the view that the assessee was rightly excluding the export sales form the gross turnover and was accordingly paying composition amount on gross turnover of local sales. Therefore, the question of law framed hereinabove is answered in favour of the assessee and against the revenue. Revision dismissed. - S.B. Sales Tax Revision / Reference No. 13 To 19/2023, 61 to 67/2023 - - - Dated:- 16-5-2023 - HON'BLE MR. JUSTICE SAMEER JAIN For the Petitioner(s) : Mr. Punit Singhvi with Mr. Ayush Singh, Ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sis of gross turnover. The prescribed composition amount vis- -vis annual turnover is reproduced as under: S No Annual Gross turnover of the relevant year Annual Composition amount (in Rupees) 1 Upto Rs. 2.00 lac Nil 2 More than Rs. 2.00 lac and upto Rs 10.00 lac 3,000/- 3 More than Rs. 10.00 lac and upto Rs 500.00 lac 9,600/- 4 More than Rs. 50.00 lac and upto Rs 100.00 lac 15,000/- 5 More than Rs. 100.00 lac and upto Rs 200.00 lac 21,000/- 6 Above Rs. 200.00 lac 30,000/- 5. Learned counsel for the revenue contends that the term annual gross turnover would mean entire turnover and would include the amount of export sale as well and therefore would have an effect on the liability of the composition amount. Learned counsel submits that Co-ordinate Bench of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inding on the subsequent Composition Scheme 2006 introduced under RVAT Act. 9. Learned counsel for the assessee further submits that the Composition Scheme 2006 was issued by the State Government vide Notification No. F.12(63)FD/Tax/2005-37 dated 06.05.2006, in exercise of powers conferred under Section 5 of the RVAT Act. It is submitted that Section 5 provides for payment of tax in lump sum in respect of sales of such class of goods or by such class of dealers on such terms and conditions as may be notified in the Official Gazette. It is contended that the composition amount paid under Composition Scheme 2006 is not in nature of fee or fine, as contended by the revenue, but is payment of lump sum tax as envisaged under Section 5 of RVAT Act, and thus the composition amount retains the character of tax only and since the revenue has no authority, under the RVAT Act, to collect tax on export sales, the export sales cannot be included in the gross turnover for determination of composition amount. In support of this contention, learned counsel for the assessee has also highlighted the use of the words within the State in the preamble to the notification dated 06.05.2006. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ined in this Act, the State Government may provide an option for payment of tax in lump sum in respect of sales of such class of goods or by such class of dealers on such terms and conditions as may be notified in the Official Gazette. (2) The tax in lump sum specified in sub-section (1) shall not exceed the limit of maximum tax liability as provided in sub-section (1) of section 4. 15. The specific terminology used in the Composition Scheme 2006 and Section 5 of RVAT Act, like (i) in lieu of tax liability ; (ii) sale of all kinds within the State ; (iii) gross turnover ; (iv) payment of tax in lump sum , are note-worthy. From the conjoint reading of notification dated 06.05.2006 and Section 5 of RVAT Act, it is abundantly clear that the composition amount as envisaged under the Composition Scheme 2006 is levied so that assessee can discharge his/her tax liability by paying a lump sum amount / composition amount. The Composition Scheme 2006 was introduced with a beneficial purpose with the objective to streamline/simplify the tax paying process and to reduce the otherwise rigorous and complex compliance with respect to tax return. Thus, composition amount paid by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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