STATE OF TAMIL NADU Vs. N KRISHNASWAMY NAIDU

JUDGEMENT

(1.) THE assessee raises an interesting question in this tax revision case. The facts are very simple, The assessing officer rejected the account and made a best judgment in respect of the bakery products dealt with by the assessee in the following manner :

(2.) CONSIDERING the above notification the Appellate Tribunal says that the turnover for the period from April 1, 1981 till September 15, 1981 is totally exempt by virtue of the first notification. Therefore, the turnover for period September 16, 1981 till March 31, 1982 being only Rs. 1,29,372 is less than Rs. 2 lakhs as contemplated by the proviso which was added on September 11, 1981. Consequently, the Appellate Tribunal holds that the total turnover of bakery products for the year is exempt. The Revenue has filed the revision petition challenging the order of the Appellate Tribunal. It is argued by the Government that the second notification being an amendment to the first notification dated March 26, 1981 must be applicable to the case of the assessee at the end of the assessment year, namely, March 31, 1982. Inasmuch as the turnover for the year has to be taken into account, the total turnover right from April 1, 1981 till March 31, 1982 should be taken into consideration and so construed it is beyond the limit of Rs. 2 lakhs referred to in the notification. Therefore, it is argued that the Appellate Tribunal is not right in granting exemption. On the other hand, it is argued by Mr. Prasad, for the respondent that the exemption granted by the first notification should be made available to the assessee till the proviso was introduced. In other words, in respect of the sales of bakery products the first notification dated March 26, 1981 was available and the assessee cannot therefore be denied the said exemption granted by the notification. In other words, the sales till September 11, 1981 had already become entitled to the exemption or the exemption had already accrued to the assessee in respect of such sales. We are of the opinion that the argument of the respondent cannot be accepted. The Tamil Nadu General Sales Tax Act refers to. an assessment for the entire financial year and the basis of the assessment is "the year". Therefore, even though, there was a notification granting exemption in respect of bakery products, if during the currency of the year itself an amendment is brought forward limiting the grant of exemption, the amendment has to be given effect to. In this connection one must remember that these are all notification under Section 17 of the Tamil Nadu General Sales Tax Act granting certain concessions or exemptions to the assessees. Therefore, such concessions or exemptions should be strictly considered and where the notification is amended during the currency of the year the assessee cannot get a concession or exemption beyond what is stated in the amendment. Further, though an exemption notification is available on paper the turnover till September 16, 1981 cannot be wiped of from the records. The turnover is always there and it is only because of the exemption notification that the tax is not levied. Therefore, when at the end of the financial year an assessment is made for the entire year, the turnover for the entire year has to be taken into account. In fact the proviso refers to this "total turnover of the dealer for a year". Section 2(t) of the Tamil Nadu General Sales Tax Act says that the word "year" means the financial year. No doubt this definition is subject to the context being otherwise.