Exemption during the assessment year barred bifurcated turnover tax levy for the exempt period under the composition scheme.

Exemption granted during the assessment year took the dealer outside the charging provision from the date of exemption, so the assessing authority could not split the yearly composition assessment and levy turnover tax under section 6-B for the exempted period. The annual composition scheme under section 17(6) operates within the subsisting charging provision, and once exemption under section 8-A removes the charge, liability cannot be revived for that part of the year. The bifurcation of the assessment period and tax demand for the exempt period were therefore impermissible, and the issue was decided in favour of the assessee.

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Issues: Whether, after exemption had been granted during the assessment year, the assessing authority could bifurcate the yearly composition assessment and levy turnover tax under section 6-B on the exempted period.

Analysis: Section 17(6) permits composition on a yearly basis, but the liability is tied to the subsisting charging provision. The Court followed the earlier view that exemption under section 8-A takes the dealer out of the charging section from the date of exemption, and once the charge comes to an end, the liability cannot be revived for the exempted portion of the year. The exemption in the present case covered the relevant year, so splitting the assessment period and imposing turnover tax under section 6-B was inconsistent with the statutory scheme.

Conclusion: The bifurcation of the composition assessment and the levy of turnover tax after exemption were impermissible; the issue was decided in favour of the assessee.

Ratio Decidendi: Where exemption under the sales tax statute operates during the assessment year, the dealer is of the charging provision from the date of exemption and the yearly composition assessment cannot be bifurcated to impose tax for the exempt period.

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