Additional sales tax follows automatically once dealer turnover crosses the statutory limit after assessment

Additional sales tax under the Tamil Nadu Additional Sales Tax Act was held leviable where a dealer had already been assessed under the principal sales tax law and the dealer's total turnover exceeded the statutory threshold. The court reasoned that section 2(1) made the levy consequential to the original assessment and did not require a fresh inquiry into whether part of the turnover related to principals whose individual turnovers were below the limit. Once the assessees were assessed as dealers and crossed the prescribed turnover limit, liability to additional tax followed automatically, and the challenge to the levy failed.

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Issues: Whether additional sales tax under section 2(1) of the Tamil Nadu Additional Sales Tax Act, 1970, was leviable on the assessees whose turnover exceeded the statutory limit, notwithstanding the contention that part of the turnover related to principals whose individual turnovers were below the threshold.

Analysis: Section 2(1) imposed additional tax on a dealer who had been assessed to tax under the principal sales tax law and whose total turnover for the year exceeded the prescribed limit. The provision made the levy consequential to the original assessment and did not require a further inquiry at the stage of additional tax into whether the turnover represented the dealer's own business or that of principals. Once the assessees were assessed as dealers under the Tamil Nadu General Sales Tax Act, 1959, and their total turnover exceeded the statutory limit, the liability to additional tax followed automatically.

Conclusion: The additional sales tax was correctly levied on the assessees, and the challenge to the levy failed.

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