TaxTMI 
TaxTMI 
2018 (4) TMI 208
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....ax, since the sale turnover of by the two Principals was less than 10 crores, during the assessment year 2003-2004. (ii) The Tribunal has committed a manifest error in rejecting the letters from the two Principals to that their turnover, including the consignment sale through agents, was less than Rs. 10 crores. (iii) The Tribunal has failed to note that the sale turnover shown by the Principals was inclusive of the sales through their agents including the petitioner and since their turnover did not exceed Rs. 10 crores, neither the Principals nor the petitioner are liable to pay additional sales tax. (iv) In any event, levy of additional sales tax on the petitioner's turnover is unsustainable, since the sales turnover....
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....Thulasian Feeds (P) Limited and K.M.S.Oil Stores, have not paid the Additional Sales Tax, in their respective assessment circles. (ii) The petitioner-Dealer, in their letter, have accepted their liability and paid it accordingly and therefore, the plea that the above agents were not liable for payment of Additional Sales Tax, since their taxable turnover had not reached Rs. 10 crores, is not acceptable. (iii) As per explanation 1 to Section 2(1)(aa) of the TNAST Act, 1970, the turnover of agents should be included in the principals' turnover to determine the Additional Sales Tax liability. Therefore, in the absence of proof to show that the above consignment agents have paid the Additional Sales Tax, the principal has to pay Additi....
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....t year 2003-04, a dealer whose taxable turnover is above 10 crores of rupees is liable to pay Additional Sales Tax. This is also applicable to the principal selling or buying goods through agents. In Explanation-I under Section 2 (aa) of TNAST Act, 1970, the taxable turnover in respect of the principal has been defined to include the aggregate taxable turnover of all his agents relating to the sale/purchase of goods of the principal. Hence, it is needless to say that at the time of final assessment of the agents, they have to prove with valid documents that their taxable turnover on behalf of the principal has been included in the taxable turnover of the principal and Additional Sales Tax paid. In this instant case, originally the Assessing....
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....0,44,952/- and levied AST of Rs. 1,30,450/- in the original assessment order, dated 26.9.05 (filed in page no.455). The respondent(petitioner)-dealer had not produced any certificate from the respective assessment circle relating to the principal-dealers, Tvl.Thulsian Foods (P) Limited and Tvl.K.M.S.Oil Stores for the turnover of Rs. 29,78,174/- and Rs. 5,22,228/- respectively and also not proved that these turnovers are included in the turnover of the above stated principals and Additional Sales Tax paid nor filed any valid certificate from the Assessment Circle that those principals did not reach the taxable limit for levy of Additional Sales Tax. Generally, in the principal agent relationship, the agent has to issue certificate, obtained....
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....nal was right in holding that the petitioner is liable to pay Additional Sales Tax when the petitioner's sales turnover has already been included in the turnover of the Principals? b) Whether the Tribunal was right in rejecting the certificates of the Principals of the petitioner to the effect that their sales turnover, including the sales by the petitioner, was less than Rs. 10 Crores as not valid proof? c) Whether in the facts and circumstances of the case the petitioner is liable to pay Additional Sales Tax on the consignment sales turnover when the same is included in the total turnover of it principals of the petitioner? d) In the absence of enabling provision for levy of interest on the additional sales tax due, whether the....
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....005, has been sent to the Assessing Authority, stating that out of 11 principals, 6 of them have paid Additional Sales Tax, in their assessment circle, and the remaining 5 principals have paid Rs. 1,30,450/- on 24.05.2005. The Commercial Tax Officer Washermenpet-II, listed out 9 principals, in which, 6 principal-dealers have paid Additional Sales Tax, on behalf of the agents and certified that 3 dealers viz., Tvl.Guru Oil Mart, Arun Oil Traders and Kaleeswari Oil Mart, have not reached Rs. 10 crores taxable turnover. However, the Assessing Authority levied additional sales tax of Rs. 1,30,450/-, on the ground that the revision petitioner has not produced any certificate from the respective assessment circle, relating to the principal-dealer....