Retrospective tax amendments and turnover inclusion were refused for an earlier assessment year under additional sales tax law.

A later amendment to the Tamil Nadu Additional Sales Tax Act, 1970 inserting Section 2(aa) and its explanation was not accepted as retrospective for assessment year 1995-96. The Court applied the earlier Division Bench view that, on the relevant law, the agents' turnover could not be included in the assessee's turnover for additional sales tax merely by relying on the subsequent amendment. Finding no manifest error in the Tribunal's approach, the Revenue's challenge failed and the turnover computation for the impugned year was left undisturbed.

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Issues: Whether the amendment inserting Section 2(aa) and its explanation in the Tamil Nadu Additional Sales Tax Act, 1970 could be applied retrospectively to the assessment year 1995-96 so as to include the agents' turnover for levy of additional sales tax.

Analysis: The revision turned on the effect of the subsequent amendment and whether the agents' turnover could be added to the assessee's turnover for computing additional sales tax for an earlier assessment year. The Court applied the earlier Division Bench decision which had held that the governing law for the relevant year did not permit such inclusion on the basis sought by the Revenue, and found no manifest error in the Tribunal's view. As the amendment relied upon was not accepted as a basis to alter the assessment for 1995-96 in the present facts, the Revenue's challenge failed.

Conclusion: The retrospective application of the amendment was rejected and the inclusion of the agents' turnover for the impugned assessment year was not upheld.

Final Conclusion: The revision was dismissed, leaving undisturbed the Tribunal's view on the turnover issue and the relief granted to the assessee.

Ratio Decidendi: A later amendment cannot be applied to reopen the turnover computation for an earlier assessment year unless the statute clearly makes the amendment retrospective or declaratory in the legally relevant sense.

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