Additional sales tax computation must split turnover between pre-amendment and amended periods for the relevant assessment year.

Additional sales tax for assessment year 1996-97 had to be computed by taking the taxable turnover for the entire year and applying the pre-amendment rate up to the date of amendment, with the amended provision applied thereafter. The Tribunal's view that no levy could arise merely because the taxable turnover was below the stated threshold was not accepted. The liability was required to be recomputed by the assessing authority in line with the governing legal position, and the matter was remitted for fresh computation.

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Issues: Whether additional sales tax could be levied for assessment year 1996-97 in the light of the amendment to Section 2(1)(aa) of the Additional Sales Tax Act, 1970, and how the taxable turnover for the period before and after the amendment was to be worked out.

Analysis: The issue was treated as covered by an earlier decision of the Court holding that, for the relevant assessment year, the taxable turnover for the whole year must be taken into account, while the turnover up to the date of amendment has to be assessed at the rate applicable to that period and the turnover thereafter has to be considered under the amended provision. On that basis, the Tribunal's view that additional sales tax could not be levied merely because the taxable turnover was below Rs. 100 crores was not accepted. The liability was required to be recomputed by the assessing authority in accordance with the applicable rates for the respective periods.

Conclusion: The Tribunal's order was set aside and the matter was remitted to the assessing authority for fresh computation of liability on the basis of the governing legal position.

Final Conclusion: The revision succeeded to the extent of upsetting the Tribunal's view, but the tax liability was left open for recomputation on remand in accordance with the applicable statutory regime.

Ratio Decidendi: For the relevant assessment year, additional sales tax liability must be determined by taking the taxable turnover for the entire year and applying the rate in force for the period up to the amendment and the amended provision thereafter.

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