TaxTMI 
TaxTMI 
TaxTMI 
2026 (3) TMI 145
X X X X Extracts X X X X
X X X X Extracts X X X X
....handigarh (for short 'Tribunal'), passed for different assessment years, as detailed hereunder:- Appeal No. Assessment year Assessment Order First Appellate Order Order passed by Tribunal (VATAP-83 of 2018 2012-13 31.03.2016 23.11.2016 06.03.2018 (VATAP-95-2019 2013-14 30.03.2017 22.03.2018 08.01.2019 (VATAP-96-2019) 2013-14 31.03.2017 27.03.2018 08.01.2019 (VATAP-107-2019) 2013-14 31.03.2017 27.03.2018 08.01.2019 (VATAP-127-2019) 2013-14 30.03.2017 22.03.2018 08.01.2019 3. Appellant is aggrieved of the alleged erroneous interpretation of Sections 7 and 7-A of 2003 Act by the Assessing Authority as well as the Appellate Authorities. Case of appellant is that the authorities have wrongly construed Sections 7 and 7-A of 2003 Act and have incorrectly determined the taxable turnover by applying different yardsticks under the said provisions, beyond the parameters contemplated under the said Act. Provision for levy of additional tax/surcharge u/s 7A of 2003, Act, cannot be applied in a manner contrary to the prescribed statutory scheme by ignoring provision under which VAT is leviable u/s 7 of 2....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... i) Whether in the facts and circumstances of the case, there is no difference between tax leviable and tax payable as tax and additional tax is leviable on the seller on the sale of goods? ii) Whether in the facts and circumstances of the case, tax leviable on the taxable turnover is not tax and additional tax? iii) Whether in the facts and circumstances of the case, tax payable on sale to registered dealer against declaration in Form D1 for use the goods in the manufacture of goods for sale is leviable at the rate prescribed under Section 7(2)(b) @4% on production of declaration form? iv) Whether in the facts and circumstances of the case tax is not leviable on the taxable turnover, i.e. a tax under section 7 plus additional tax leviable under Section 7A? 9. The other appeals were admitted subsequently on different dates. It was submitted that identical questions of law as in VATAP-83-2018, are involved in all these appeals. 10. In order to properly appreciate the controversy involved in the present case, it would be necessary to refer to sections 7 and 7-A (added by way of amendment in year 2010) of 2003 Act, which are reproduced hereund....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... sale of such goods had it been a sale falling under clause (a) of sub-section (1); Provided that the State Government may, by notification in the Official Gazette, direct that tax under clause (b) shall be calculated at a lower rate: Provided further that the State Government, if satisfied that it is necessary or expedient so to do in the interest of promotion of exports out of the country may, by notification in the Official Gazette, direct that tax under clause (b) on the taxable turnover which relates to the sale of goods of such class or classes to such class or classes of authorised dealers for such use by them, as may be specified in the notification, shall be calculated at zero rate. (3) The provisions of sub-section (2) so far as the rate of tax applicable thereunder on a sale of goods in the State is lower than the rate of tax applicable under clause (a) of sub-section (1) if such sale had been a sale falling within that clause, shall not apply unless the dealer selling the goods furnishes to the assessing authority in the prescribed circumstances and in the prescribed manner- (a) if the goods are sold to an authorised dealer, a declara....
X X X X Extracts X X X X
X X X X Extracts X X X X
....urposes. Section 7-A "7 A. Levy of Additional Tax.-(1) Notwithstanding anything contained in this Act, there shall be levied and collected on the taxable turnover of a dealer registered under this Act other then retailer in lump-sum composition with the department, an additional tax, in the nature of surcharge, which shall be calculated at the rate of five per cent of the tax, payable by him: Provided that the aggregate of tax and the surcharge payable under this Act, shall not exceed in respect of the goods, declared to be of special importance in inter-state trade or commerce under Section 14 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956), the rate fixed under Section 15 of that Act. (2) Except as otherwise provided in Sub-section (1), the provisions of this Act shall, so far as may be, apply in relation to the additional tax leviable under Sub-section (1), as they apply in relation to the tax leviable under any other provision of this Act.". 11. On a consideration of Sections 7 and 7-A of 2003 Act, reproduced herein above, we find that Sections 7 and 7-A operate in distinct and independent fields and are not inclusive of each o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....upreme Court had held that : "6. The components which enter into the concept of a tax are well known. The first is the character of the imposition known by its nature which prescribes the taxable event attracting the levy, the second is a clear indication of the person on whom the levy is imposed and who is obliged to pay the tax, the third is the rate at which the tax is imposed, and the fourth is the measure or value to which the rate will be applied for computing the tax liability. If those components are not clearly and definitely ascertainable, it is difficult to say that the levy exists in point of law. Any uncertainty or vagueness in the legislative scheme defining any of those components of the levy will be fatal to its validity. 16. On testing levy u/s 7A all the four necessary components as stated above are clearly made out. Tax u/s 7A is additional tax / surchage payable by registered dealer calculated @ 5% of tax payable by such dealer. 17. It is worth noting that legislature has ensured due compliance of provisions of Central Sales Tax, 1956 Act by adding proviso to Section 7A whereby total tax leviable u/s 7 and 7A was made in conformity with provisions....