Declared goods turnover may count for fixing additional sales tax rate, so long as no excess tax is levied on those goods.

Turnover of declared goods may be included in taxable turnover for the limited purpose of determining the slab or rate of additional sales tax under the Tamil Nadu Additional Sales Tax Act, 1970, provided no additional tax is levied on those goods beyond the statutory ceiling. The proviso restricting levy on declared goods does not bar their turnover from being taken into account to fix the applicable rate for taxing general goods. On that basis, the challenge failed and the Tribunal's common order was upheld.

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Issues: Whether the turnover relating to declared goods could be included in the taxable turnover under section 2 of the Tamil Nadu Additional Sales Tax Act, 1970 for the limited purpose of fixing the rate of additional tax, notwithstanding the proviso restricting levy on declared goods.

Analysis: The additional tax under section 2 was attracted when a dealer's taxable turnover exceeded the prescribed threshold, and the proviso ensured that declared goods would not bear tax and additional tax together beyond four per cent of the sale or purchase price. On the facts, no additional tax was levied on the declared goods themselves. Their turnover was taken into account only to determine the applicable slab and rate for levying additional tax on the turnover of general goods. The proviso did not prohibit inclusion of declared goods turnover for this limited purpose, and the only restriction was against taxing declared goods beyond the ceiling fixed for them.

Conclusion: The inclusion of declared goods turnover for fixing the rate of additional tax was valid, and the assessee's challenge failed.

Final Conclusion: The common order of the Tribunal was upheld and the tax cases were dismissed.

Ratio Decidendi: Turnover of declared goods may be included in taxable turnover for determining the slab or rate of additional sales tax, provided no additional tax is levied on such goods in excess of the statutory ceiling.

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