TaxTMI 
TaxTMI 
2018 (7) TMI 147
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.... [1] "Whether the Gujarat Value Added Tax Tribunal was justified in holding that lump sum tax is payable under the Gujarat Value Added Tax Act, 2003 on the turnover of sales of "bread" ?" [2] "Whether in the facts and circumstances of the case, the Assistant Commissioner of Commercial Tax had the jurisdiction to undertake the provisional assessment under Section 32 of the Gujarat Value Added Tax Act, 2003 ?" [3] "Whether the Assistant Commissioner of Commercial Tax was justified in confirming the dues under the Gujarat Value Added Tax Act, 2003, simply on the basis of provisional assessment without passing audit assessment or re-assessment order ?" By a separate judgment passed today in Tax Appeal No. 885 of 2014,....
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....alculated in such manner as may be prescribed." Term "turn over of sales" is defined under Section 2 [33] as under : "2 [33] "turnover of sales" means the aggregate of the amount of sale price received or receivable by a dealer in respect of such sale of goods made during a given period after deducting the amount of sale price; if any, refunded by the dealer to a purchaser in respect of any goods purchased and returned by the purchaser within the prescribed period." Term "total turnover" is defined in Section 2 [34] as under: "2 [34] "total turnover" means aggregate of the following transactions effected by a dealer : (a) turnover of sales or purchases of goods within the State whether such sales....
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....n Sales : (1) (a) Notwithstanding anything contained in this Act, the Commissioner may, in such circumstances and subject to such conditions as may be prescribed, permit any dealer, whose total taxable turnover has not exceeded Seventy Five lakhs rupees in the previous year, to pay lump sum tax in lieu of the amount of tax payable under section 7 of this Act. Provided that the Commissioner shall not grant permission to pay lump sum tax under sub-section [1] to a dealer who - [i] sells the goods in the course of inter-state trade and commerce or exports goods out of the territory of India; [ii] has purchased in the previous year or in the course of inter-State trade and commerce or has imported in the prev....
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....d in the manufacturing activity would not be entitled to composition of tax provided under sub-section [1] of Section 14, unless the manufacturing activity in question has been specified for exclusion from such treatment by the Government by an order in writing. As per sub-section [3] of Section 14, a dealer who is permitted to pay lump sum tax is not entitled to certain benefits, such as to claim tax credit in respect of tax payable by him on his purchases or charge any tax on his sales invoice in respect of the sales on which lump sum tax is payable. It is in context of this proviso that the Government had issued a Notification dated 31st March 2006 which reads as under : "In exercise of the powers conferred by sub section (2)....
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.... amount of the tax payable by the dealer on the total turnover of his sales, who has been permitted to pay lump sum tax under subsection [1] of Section 14." This notification thus referred to the lump sum tax to be computed in case of a dealer, at a prescribed rate, on "the total turnover of his sales". Within less than one month, the Government issued an amendment vide notification dated 29th April 2006 and substituted the words "total turnover" by the words "taxable turnover" in the said notification. In other words, in case of the dealers, who want to pay lump sum tax in lieu of normal tax, the rate of tax prescribed was one-half per cent. This one-half per cent was to be computed as per notification dated 31st March 2006 on the total....
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....xable turnover. We have referred to the notification dated 31st March 2006 issued by the Government in respect to the dealers by first prescribing a certain percentage of the total turnover to be paid by way of lump sum tax, but quickly changing to the percentage of "taxable turnover". This clearly indicates that when inadvertently in case of other class of dealers, the term in the notification which found place was "total turnover", for clarification and proper implementation of the provisions, it was promptly and quickly changed to "taxable turnover". Harmonious and purposive interpretation even in the taxing statutes is not impermissible when the situation so demands. The Supreme Court in the case of State of Kerala & Ors. vs. A.P Mammik....