HOTEL RANJITH Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) ALL the above original petitions relate to the validity of Section 3 -D or 3 -E(1) and Part A or Part B of the Ninth Schedule to the Tamil Nadu General Sales Tax Act, 1959, or the assessment orders passed under the said provision. Since common issues arise in all the cases the original petitions are taken up jointly and a common order is passed as indicated below :

(2.) MR . C. Natarajan, the learned Senior Counsel argued the case of the petitioner in O.P. No. 463 of 2000. The facts are as follows :

(3.) IT is further pointed out that in the instant case the turnover that was determined in respect of the petitioners liable to tax was the total turnover as per Section 3 -D of the Tamil Nadu General Sales Tax Act, 1959. Therefore, the total turnover is indeed the taxable turnover for the purpose of levying tax under Section 2 of the Additional Sales Tax Act. Reference is then made to Rule 6 of the Tamil Nadu General Sales Tax Rules, 1959 which provides for deductions to be made from the total turnover for arriving at the taxable turnover. It is then pointed out that Rule 6 will apply only to an assessment under Section 3(2) or 3(4) of the Tamil Nadu General Sales Tax Act and not to an assessment under Section 3 -D of the Tamil Nadu General Sales Tax Act. In other words, no deduction is permissible from the total turnover in an assessment under Section 3 -D of the Tamil Nadu General Sales Tax Act, 1959. It follows therefore, that the total turnover which is the basis for assessment under Section 3 -D of the Tamil Nadu General Sales Tax Act has to be treated as taxable turnover for the purpose of the Additional Sales Tax Act because that is the only turnover which is subjected to tax and therefore becomes the taxable turnover.