Basic tax rate under sales tax notification excludes additional surcharge unless expressly included.

The notification issued under section 8(5) of the Central Sales Tax Act, 1956 was construed to refer only to the basic four per cent rate of tax under section 3A of the Uttar Pradesh Trade Tax Act, 1948. Additional tax under section 3E was treated as a surcharge over and above the tax on the goods, not as part of the rate of tax on the goods themselves, so it was excluded from the notification's scope unless expressly included. A later notification expressly excluding additional tax was treated as clarificatory and as resolving any ambiguity in the earlier notification.

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Issues: Whether, for the purpose of the notification issued under section 8(5) of the Central Sales Tax Act, 1956, the expression "goods liable to tax at the rate of four per cent under the Uttar Pradesh Trade Tax Act, 1948" includes the additional tax leviable under section 3E of the Uttar Pradesh Trade Tax Act, 1948, or whether it refers only to the basic rate of tax prescribed under section 3A of that Act.

Analysis: On a conjoint reading of sections 3A, 3D and 3E of the Uttar Pradesh Trade Tax Act, 1948, the additional tax under section 3E was held to be a surcharge over and above the tax payable on the goods, and not a separate rate of tax on the goods themselves. The notification dated 1 October 1994 issued under section 8(5) of the Central Sales Tax Act, 1956 was therefore interpreted by reference to the basic rate of four per cent prescribed under the notification issued under section 3A. The subsequent notification dated 31 January 1995, which expressly excluded additional tax, was treated as clarificatory and as resolving the ambiguity in the earlier notification.

Conclusion: The expression "rate of tax" in the notification dated 1 October 1994 refers only to the basic rate of four per cent under section 3A of the Uttar Pradesh Trade Tax Act, 1948, and does not include additional tax under section 3E. The notification applied to the assessee's turnover, which was taxable at four per cent.

Ratio Decidendi: Where a taxing notification refers to goods liable at a stated rate under the State sales tax law, the relevant rate is the basic statutory rate on the goods, and an additional levy described as additional tax is not to be included unless the notification expressly so provides.

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