TaxTMI 
TaxTMI 
2010 (7) TMI 933
X X X X Extracts X X X X
X X X X Extracts X X X X
....) and also deleted certain words in the newly inserted section 2(1)(a) of the Tamil Nadu Act 31 of 1996. In the light of the above pre-amended section 2(1)(a) and the amended sections 2(1)(a) and 2(1)(aa) as well as striking down of the provisions to the extent referred to in the above judgment of the Special Tribunal, the question to be considered is as to in what manner the additional sales tax liability of the petitioner-assessee is to be determined. In order to appreciate the contentions raised, it is better to note the unamended provision as well as the amended provisions and the provision as it stands after the judgment of the Special Tribunal. Section 2(1)(a) as it originally stood reads as under: "2. Levy of additional tax in the case of certain dealers.-(1)(a) The tax payable under the Tamil Nadu General Sales Tax Act, 1959 (Tamil Nadu Act 1 of 1959) (hereinafter in this section referred to as the said Act), shall, in the case of a dealer whose taxable turnover for a year exceeds ten lakhs of rupees, be increased by an additional tax calcu lated at the following rates, namely: Rate of tax (i) Where the taxable turnover exceeds ten lakh....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t of the taxable turnover (ii) Where the taxable turnover exceeds three hundred crores of rupees 3 per cent of the taxable turnover Explanation.-'Taxable turnover' for the purpose of this clause in respect of a principal selling or buying goods in this State through agents shall be the aggregate taxable turnover of all his agents relating to the sale or purchase of the goods of such principal within the State.'' In Siemens case [1998] 110 STC 313, the Special Tribunal passed the following order (pages 329 and 330 of 110 STC): ''To give effect to the said intention we proceed to hold that clause (a) of sub-section (1) of section 2 of the principal Act, namely, Act 14 of 1970 is ultra virus and should stand deleted. We make it clear that we are striking down only clause (a) of section 2(1). We also make it clear that under section 2(2) and 2(3) the intention of the Legislature not to pass on the burden of additional sales tax to the consumers and the reference to prosecution, shall stand unaltered. So far as section 2(1)(aa) as amended by Tamil Nadu Act 31 of 1996, the following words shall stand deleted, as obnoxious: (1) The words 'i....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... for the period subsequent to August 1, 1996, the order of the assessing authority not having applied the unamended provision namely, section 2(1)(a) as it originally stood, by not deducting the first ten lakhs of rupees in the taxable turnover, to that extent, the order of the assessing authority was liable to be interfered with. As against the above submission, the learned Special Government Pleader would contend that since section 2(1)(a) as it originally stood prior to amendment, was very much in force up to July 31, 1996, as the said provision came to be amended by introducing sections 2(1)(a) and 2(1)(aa) on and from August 1, 1996, the liability of the petitioner-assessee for payment of additional sales tax has to be worked out based on the provisions, both unamended up to July 31, 1996 and as amended based on the Siemens case [1998] 110 STC 313 (TNTST) on and after August 1, 1996 which were in force during the relevant period. The further contention of the learned Special Government Pleader is that the definition of the expression "year" in the Tamil Nadu General Sales Tax Act, though means the "financial year", the same will not in any way affect the authority of the as....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hurdle at all in bifurcating the financial year in the case of any assessee, while applying the un-amended section 2(1)(a) up to July 31, 1996 and the liability after its amendment on and after August 1, 1996, for the purpose of calculating the additional sales tax liability. In the case on hand, having regard to the decision of the Special Tribunal in Siemens case [1998] 110 STC 313 (TNTST), the additional sales tax liability up to July 31, 1996 is to be worked out based on the unamended section 2(1)(a), which was prevailing up to that date. As per the provision as it stood as on July 31, 1996, in the case of a dealer whose taxable turnover in that financial year up to July 31, 1996 exceeded ten lakhs of rupees, up to one crore of rupees, his tax liability has to be increased by an additional sales tax at the rate of 1.5 per cent; where the taxable turnover exceeded one crore of rupees up to five crores of rupees, it is two per cent; where it exceeded five crores of rupees up to ten crores of rupees, at the rate of 2.25 per cent; where it exceeded ten crores up to 300 crores of rupees at the rate of 2.5 per cent and where it exceeded 300 crores of rupees at the rate of three pe....