ANANDA STORES Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THESE two tax cases arising out of levy of additional sales tax for assessment years 1976-77 and 1977-78 need an answer to a common question. The question is, whether the turnover relating to "declared goods" is includible in the taxable turnover under section2 of the Tamil Nadu Additional Sales Tax Act, 1970 (hereinafter called "the Act") for the purpose of fixing the rate of tax.

(2.) BRIEF facts leading to the filing of these tax cases may now be noted. For the assessment year 1976-77, the taxable turnover of the assessee was determined by the assessing officer in a sum of Rs. 11, 40, 584.44. Out of this taxable turnover, a turnover of Rs. 4, 27, 771 represented sales of declared goods, and as such, subjected to levy of maximum of 4 per cent and the balance turnover, namely, Rs. 7, 12, 813.05 represented sales of general goods. For this year, namely, 1976-77, initially, the assessing officer, taking the turnover of general goods alone, namely, Rs. 7, 12, 813.05 as taxable turnover, for the purpose of additional sales tax, proposed to levy tax at the rate applicable to taxable turnover less than Rs. 1O lakhs. Subsequently, he revised the proposal and included the turnover of goods relating to declared goods for the purpose of levying additional sales tax and thus fixed the taxable turnover at Rs. 11, 40, 584.44. It may at once be pointed out that the levy of additional tax was only on the turnover relating to general goods. In other words, the turnover relating to declared goods was excluded from the levy of additional tax. The turnover relating to declared goods was taken into account only for the purpose of fixing rate of tax. By including the turnover relating to declared goods, the slab of taxable turnover for the purpose of additional sales tax had been fixed at Rs. 11, 40, 584.44 and the rate of tax was accordingly fixed. The assessee raised objection for the inclusion of turnover relating to declared goods for the purpose of arriving at taxable turnover slab under section2 of the Act. According to the assessee, the maximum of 4 per cent was levied on the sales of declared goods and in the light of the proviso to section2 of the Act, the inclusion of turnover of declared goods was illegal. That objection was overruled and the assessing officer levied additional tax at 0.7 per cent on the turnover relating to general goods, on the basis that the taxable turnover exceeded Rs. 10 lakhs. Except the difference in figures, the point of law that arises for consideration is identical in respect of the assessment year 1977-78.

(3.) ON further appeals, the Sales Tax Appellate Tribunal also, by a common order, dismissed the appeals on April 16, 1980. It is under these circumstances, these two tax revisions came to be filed.