GOLDEN LEATHERS Vs. DEPUTY COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) M/s. Golden Leathers, Tannery, 4a/137, Salem Road, Athiyur, Tirupathur (petitioner) is a registered dealer under the provisions of the Tamil Nadu General Sales Tax Act, 1959 (Tamil Nadu Act 1 of 1959) (for short "the TNGST Act" ). It was dealing in raw hides and skins and dressed hides and skins - declared goods, besides other goods. It was a rule 18 (3) assessee paying necessary and requisite tax therefor on the actual turnover reported. Its taxable turnover for the year previous to the assessment year 1989-90, that is to say, 1988-89, exceeded Rs. 10 lakhs and the taxable turnover for the subsequent assessment years till up to now, it is said, did not at all fall below Rs. 10 lakhs.

(2.) WHILE, so, it filed W. P. No. 9880 of 1988 before this court challenging the constitutional vires of entries 7 (a) and 7 (b) of the second Schedule to the TNGST Act, purporting to levy sales tax both on raw hides and skins and dressed hides and skins. There was a stay, it is said, of further proceedings, pending disposal of the writ petition, which event happened on April 23, 1993. Subsequent to the dismissal of the writ petition, it appears that there was no further agitation by way of appeal before this Court.

(3.) IN the case on hand, the taxable turnover for all those years, never fell below Rs. 10 lakhs and does not also exceed Rs. 40 lakhs, thereby making it liable to pay additional sales tax at the rate of 1. 25 per cent of the taxable turnover. The rates prescribed by way of levy of sales tax for raw hides and skins and dressed hides and skins under the relevant item or entry in the Second Schedule vary year after year and therefore, it becomes necessary to notice such variations as detailed thus :s. No. Assessment year rate of tax (in percentage) Hides and skins Raw Dressed 1 1989-90 2 1 2 1990-91 2 2 3 1991-92 (up to September, 1991) 2 2 (From October, 1991 to February, 1992 for five months) 4 4 4 1992-93 4 1 5 1993-94 (up to September, 1993) 4 1