Additional sales tax liability must be recomputed by splitting pre-amendment and post-amendment turnover under the yearly threshold rule.

Additional sales tax under section 2(1)(aa) of the Additional Sales Tax Act, 1970, had to be computed for assessment year 1996-97 by taking the taxable turnover for the entire year, while applying the pre-amendment regime to turnover up to 31 July 1996 and the amended provision to the balance period. The statutory threshold of Rs. 100 crores remained relevant to determine whether the amended levy applied for the year as a whole. The Tribunal's approach to the levy issue was not sustainable, and the matter was remanded to the assessing officer for recomputation under the amended statutory scheme.

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Issues: Whether additional sales tax under section 2(1)(aa) of the Additional Sales Tax Act, 1970, as amended, could be levied for assessment year 1996-97 where the taxable turnover was below Rs. 100 crores, and how the turnover for the pre-amendment and post-amendment periods was to be worked out.

Analysis: The liability for the assessment year had to be determined on the basis of the taxable turnover for the entire year, but the turnover up to 31 July 1996 was required to be assessed with reference to the rate and regime applicable before the amendment. The balance turnover thereafter had to be computed under the amended provision, depending on whether the taxable turnover for the whole year crossed the statutory threshold of Rs. 100 crores. The Tribunal's approach was therefore not sustainable in the form in which it had answered the levy issue.

Conclusion: The revision succeeded to the extent that the Tribunal's order was set aside and the matter was remanded to the assessing officer for recomputation of liability in accordance with the amended statutory scheme.

Ratio Decidendi: For a year in which the statutory amendment operates mid-year, the levy must be determined by considering the turnover for the whole year while apportioning the pre-amendment and post-amendment periods according to the law applicable to each period.

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