Additional sales tax must follow the final principal assessment, including an unchallenged exclusion of transport charges.

Additional sales tax under the Orissa Additional Sales Tax Rules, 1975 was linked to the gross turnover determined under the principal sales tax assessment, because the Rules incorporated the meaning of turnover from the parent Act and required tax to be assessed on that basis. Where transport charges had already been excluded in the final principal assessment and that order was not challenged, the determination attained finality and had to be considered when computing additional tax. The Tribunal was faulted for not examining the effect of that final assessment, and the matter was remitted for rehearing in light of the principal assessment.

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Issues: Whether, for levy of additional sales tax under the Orissa Additional Sales Tax Rules, 1975, the gross turnover had to be taken as the turnover finally determined under the principal assessment under the Orissa Sales Tax Act, 1947, and whether the Tribunal failed to consider the effect of the unchallenged appellate order excluding transport charges.

Analysis: Section 2(b) of the Orissa Additional Sales Tax Act, 1975 incorporates the meanings assigned under the principal Act. Rule 2(d-1) of the Orissa Additional Sales Tax Rules, 1975 defines gross turnover by reference to the turnover under the principal Act, and Rule 5 provides that additional tax is to be assessed on the basis of that turnover. Since the Assistant Commissioner had already excluded transport charges while determining the turnover under the principal Act, and that order was not challenged, it attained finality. The Tribunal, while dealing only with the additional tax aspect, did not examine the consequence of that final determination under the principal assessment scheme. The constitutional principle that tax can be levied only in accordance with law was also noted.

Conclusion: The Tribunal's order could not stand without reconsideration of the matter in the light of the final principal assessment, and the appeal was remitted to the Tribunal for rehearing. The writ petition succeeded to that extent.

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