Bifurcation of sales tax liability during a year applies when amendment changes the governing rate mid-period.

Where an additional sales tax statute is amended during a financial year, liability may be computed separately for the pre-amendment and post-amendment periods if different statutory rates apply. The unamended Section 2(1)(a) governed turnover up to 31.07.1996, while the amended regime under Sections 2(1)(a) and 2(1)(aa) applied from 01.08.1996. The term "year" identified the relevant accounting period and did not bar bifurcation of turnover for rate purposes. Tax for the year therefore had to be recalculated by applying the correct provision to each period, subject to the post-amendment threshold where relevant.

---

---

Issues: Whether the additional sales tax liability for assessment year 1996-97 had to be computed by applying the unamended Section 2(1)(a) of the Tamil Nadu Additional Sales Tax Act, 1970 for the period up to 31.07.1996 and the amended Section 2(1)(aa) for the period thereafter, with the financial year being bifurcated for rate purposes.

Analysis: The statutory scheme showed that the original clause applied up to 31.07.1996, while the amended regime under Sections 2(1)(a) and 2(1)(aa), as modified after the Special Tribunal's ruling in Siemens, operated from 01.08.1996. The expression "year" in the sales tax law denoted the financial year only for identifying the relevant accounting period and did not prevent apportionment of turnover where different statutory rates governed different parts of the same year. The liability therefore had to be worked out on the turnover actually earned during the pre-amendment period under the unamended provision, and only if the annual turnover crossed the post-amendment threshold would the amended provision become relevant for the later period.

Conclusion: The additional sales tax had to be recalculated by bifurcating the financial year, applying the unamended Section 2(1)(a) up to 31.07.1996 and, if necessary, the amended provision thereafter; the assessment made without adopting this method could not stand.

Final Conclusion: The revision succeeded, the impugned assessment and appellate order were set aside, and the matter was sent back for fresh computation in accordance with the correct statutory periods and rates.

Ratio Decidendi: Where a taxing statute is amended during a financial year and different rates govern different periods, tax liability for that year may be lawfully bifurcated and computed separately according to the provision in force for each period.

---