2011 (9) TMI 909

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....motor cycle parts at Bangalore. For the assessment year 1999-2000, he filed annual return in form 4 declaring gross turnover and taxable turnover at Rs. 12,97,16,709.37 and Rs. 11,32,84,913.08, respectively. The assessee admitted turnover tax liability under section 6B at one per cent. While passing the assessment order the turnover tax was levied at three per cent on a sum of Rs. 7,37,33,304.85 which represented the turnover for the period from April 1, 1999 to December 31, 1999 and one per cent on Rs. 3,41,78,404.95. Aggrieved by the same, the assessee preferred an appeal which came to be dismissed. The second appeal to the Tribunal also met with the same fate. The Tribunal set aside the order and remanded the matter back to the assessing....

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....ees and therefore he is liable to pay three per cent tax for the relevant period. The notification reducing the tax to one per cent was issued on January 1, 2000. It is well-settled law that notifications granting exemptions and reductions of taxes should be construed strictly and therefore it cannot be interpreted so as to give a retrospective effect when the notification expressly states that it has come into effect with immediate effect that is from the date of the notification. 5. Section 6B of the Act is extracted in the order passed by the Tribunal. Clause (iii) makes it clear that three per cent of the total turnover, if a total turnover is not less than 1,000 lakh rupees in a year. Therefore the language employed in describing th....

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....the Revenue, should be retrospective in nature and if it is oppressive or against the assessee then it has to be prospective. It is equally well-settled law that all notifications granting exemptions and deductions of tax has to be strictly construed. It is not open to the court to interpret the notification so as to dilute or extend the benefit beyond what is intended by the Legislature. When the notification in question specifically states that tax payable under section 6B of the Act is reduced with immediate effect it categorically states from what date the said notification comes into operation. The notification is issued on January 1, 2000 and the word used is immediate effect and therefore the benefit of that notification is available....