1995 (1) TMI 332

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....ioner is a dealer in radios, televisions and electrical goods, etc. Under section 5-B of the Act, the turnover of the assessee on those goods was liable to tax at the concessional rate mentioned therein. During the assessment year 1981-82, surcharge was levied under section 6-B on the amount of sales tax payable by it; the assessing authority took the view that the surcharge was leviable under section 6-B of the Act. On appeal, the Deputy Commissioner (CT) Appeals, Hyderabad I Division, took the view that the explanation to section 6-B includes concessional tax within the meaning of the expression "tax under this Act" and, therefore, surcharge is leviable. The petitioner carried the matter in appeal before the Sales Tax Appellate Tribunal. ....

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....o the surcharge payable under sub-section (1) as they apply in relation to the tax payable under this Act. Explanation.-For the purpose of this section, the term 'tax under this Act' shall include additional tax, concessional tax and other tax payable under section 6 or section 6-A." A plain reading of section 6-B makes it clear that a dealer who is liable to pay tax under the Act on the sale or purchase of goods is liable to pay surcharge on such tax at ten per cent of the tax. The proviso to sub-section (1) deals with declared goods under section 6, and enjoins that the rate of surcharge in respect of such goods shall be reduced to such an extent that the tax and the surcharge together shall not exceed four per cent of the sale or purch....