Additional sales tax computation to follow pre-amendment and amended rates separately across the assessment year after threshold changes.

Additional sales tax for assessment year 1996-97 had to be recomputed by applying the pre-amendment rate to turnover up to 31 July 1996 and the amended provision thereafter, with the turnover threshold of rupees 100 crores examined under the amended law. The Tribunal's approach was set aside, and the matter was remitted to the assessing officer for fresh computation of liability on the basis of the applicable rates for the respective periods of the assessment year.

---

---

Issues: Whether additional sales tax for assessment year 1996-97 was to be computed by applying the pre-amendment rate to turnover up to 31 July 1996 and the amended provision thereafter, in light of the turnover threshold introduced by the amendment.

Analysis: The dispute turned on the effect of the amendment to section 2(1)(aa) and the method of computing liability for the relevant assessment year. The turnover for the entire year had to be considered, but the turnover attributable to the period before the amendment could be charged only at the rate applicable for that period, while turnover after the amendment had to be examined under the amended provision and the threshold of rupees 100 crores.

Conclusion: The issue was answered in favour of the Revenue to the extent that the Tribunal's order was set aside and the matter was remanded for fresh computation of liability in accordance with the amended and unamended periods.

Final Conclusion: The revision was disposed of by remitting the matter to the assessing officer for recomputation of additional sales tax liability on the basis of the applicable rates for the respective periods of the assessment year.

---