Surcharge on VAT applies in addition to concessional tax for declared goods; levy valid where measured by tax payable.

Section 7-A authorises an additional surcharge measured by reference to the tax payable on taxable turnover and operates independently of the concessional rate applicable to declared goods sold against prescribed declarations; thus the concessional rate set for declared goods does not preclude levy of a surcharge. The non obstante opening and the proviso aligning aggregate levy with central limits show legislative intent to permit a surcharge while respecting central statutory ceilings. The ingredients of a valid levy under Section 7-A-taxable event, person liable, rate and measure-are ascertainable and the surcharge is therefore leviable in addition to the concessional tax.

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Issues: Whether Section 7-A of the Haryana Value Added Tax Act, 2003 authorises levy of an additional tax (surcharge) calculated at five per cent of the tax payable under Section 7, over and above the concessional rate of tax (4%) applicable to declared goods sold against Form D-1, or whether such surcharge is not leviable where taxable turnover is determined and taxed under Section 7.

Analysis: The Court considered the language and scheme of Section 7 and Section 7-A of the Haryana Value Added Tax Act, 2003. Section 7(2) prescribes the concessional rate (4%) for declared goods sold to authorised dealers on production of prescribed declarations (Form D-1). Section 7-A, introduced by amendment, opens with a non-obstante clause ("Notwithstanding anything contained in this Act") and expressly provides for levy of an additional tax in the nature of surcharge calculated at five per cent of the tax payable by a dealer. The provisions operate in distinct and independent fields: Section 7 fixes the rate of tax on taxable turnover while Section 7-A prescribes an additional surcharge measured by reference to the tax payable. The proviso to Section 7-A aligns the aggregate of tax and surcharge with limits under Sections 14 and 15 of the Central Sales Tax Act, 1956, confirming legislative intent to permit a surcharge subject to central limits. The components necessary for a valid levy-taxable event, person liable, rate and measure-are ascertainable for Section 7-A, and the legislative text does not restrict its operation where tax under Section 7 has been determined on declared goods.

Conclusion: Section 7-A of the Haryana Value Added Tax Act, 2003 is operative and authorises levy of an additional tax (surcharge) calculated at five per cent of the tax payable under Section 7; therefore the surcharge is leviable in addition to the concessional 4% tax on declared goods sold against Form D-1. The appeals challenging levy under Section 7-A are dismissed and the impugned orders upholding the surcharge are upheld.

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