w w w . L a w y e r S e r v i c e s . i n



Chandur Forgings v/s State of Tamil Nadu

    T.C. (R) Nos. 1290 and 1291 of 1981

    Decided On, 02 July 1991

    At, High Court of Judicature at Madras

    By, THE HONOURABLE CHIEF JUSTICE DR. ANAND & THE HONOURABLE MR. JUSTICE KANAKARAJ

    P. P. S. Janarthana Raja, Chitra Venkataraman, Advocates.



Judgment Text

DR. A. S. ANAND, C.J.


These two tax revision cases have been filed by the same assessee and are directed against the order of the Tamil Nadu Sales Tax Appellate Tribunal, Madras, dated 30th June, 1981, passed in two different proceedings.


2. The assessee in Tax Case (Revision) No. 1290 of 1981 questions the levy of additional sales tax for the assessment year 1977-78 while in Tax Case (Revision) No. 1291 of 1981 it puts in issue the levy of surcharge under the Tamil Nadu Sales Tax (Surcharge) Act, 1971, for the assessment year 1977-78. Both are being disposed of by this common order.


3. So far as Tax Case (Revision) No. 1291 of 1981 is concerned, the assessee was assessed to surcharge under the Tamil Nadu Sales Tax (Surcharge) Act, 1971, by the assessing authority. The surcharge was determined as per the provisions of the Act of 1971 and assessment order was issued. Appeals before the appellate authority as well as before the Tribunal failed.


4. The plea of the assessee that surcharge should have been levied only by treating the transaction as "declared goods" was not accepted by the authorities. From what follows, we find that the view of the authorities does not call for interference, though for reasons somewhat different.


5. Section 3 of the Tamil Nadu Sales Tax (Surcharge) Act, 1971, reads thus :


"3. Levy of surcharge on sales tax. - (1) Every dealer who is liable to pay tax under the Tamil Nadu General Sales Tax Act, 1959 (Tamil Nadu Act 1 of 1959) (hereinafter in this section referred to as "the said Act") on the sale or purchase of goods within the limits of area in which this Act is in force shall, on and from the date of the commencement of this Act, pay a surcharge on such tax at the rate of five per cent of such tax :rovided that in the City of Madras, for the period commencing on the 19th June, 1971, and ending with the 28th June, 1971, the rate of such surcharge shall be ten per cent


Provided further that if, in respect of declared goods, as defined in clause (h) of section 2 of the said Act -


(i) the tax under the said Act;


(ii) the additional tax under the Tamil Nadu Additional Sales Tax Act, 1970 (Tamil Nadu Act 14 of 1970); and


(iii) the surcharge under this sub-section, payable by such dealer, exceeds four per cent of the sale or purchase price thereof, the rate of surcharge in respect of such goods, shall be reduced to such an extent that the tax, the additional tax and the surcharge together shall not exceed four per cent of the sale or purchase price of such goods." *


6. Section 6 of the Tamil Nadu Sales Tax (Surcharge) Act, 1971, reads thus :


"6. Removal of doubts. - For the removal of doubts, it is hereby declared that the surcharge under this Act shall be levied only on the tax payable under the Tamil Nadu General Sales Tax Act, 1959 (Tamil Nadu Act 1 of 1959) and such surcharge shall be levied in addition to any tax or additional tax payable on the sale or purchase of goods under any law for the time being in force." *


7. It could be seen from a bare reading of section 3 that it deals with levy of surcharge on the tax determined under the Tamil Nadu General Sales Tax Act, 1959


8. T.C.(Revision) No. 1290 of 1981 : Coming now to Tax Case (Revision) No. 1290 of 1981, the assessing authority levied additional tax at 0.7 per cent on the taxable turnover under section 2 of the Tamil Nadu Additional Sales Tax Act, 1970. The pleas raised by the assessee before the Appellate Assistant Commissioner as well as before the Tribunal were similar to the one which have been noticed by us while dealing with Tax Case (Revision) No. 1291 of 1981, viz., that the goods should be treated to be "declared goods" notwithstanding the fact that in the taxable tuniover under the Tamil Nadu General Sales Tax Act, the goods were subjected to tax not as "declared goods" but on the concessional rate on the basis of form XVII.


9. Section 2 of the Tamil Nadu Additional Sales Tax Act, 1970, provides that the tax payable under the Tamil Nadu General Sales Tax Act, 1959, shall, in the case of a dealer whose taxable turnover for a year exceeds the prescribed amount in the section, be increased by an additional tax calculated at the prescribed rate. The rate prescribed in respect of the taxable turnover has been at different rates at different points of time. For the period from 1st April, 1976 to 31st March, 1984, the rate is 0.7 per cent of the taxable turnover where the turnover exceeds ten lakhs of rupees. The assessing authority in the instant case had levied tax at the same rate and, therefore, no fault can be found with the levy of tax by the assessing authority. So far as the other pleas of the assessee are concerned, we have already negatived them while dealing with Tax Case (Revision) No. 1291 of 1981. Hence, the same reasons impel us to reject the pleas rais

Please Login To View The Full Judgment!

ed on behalf of the assessee in this case also and consequently Tax Case (Revision) No. 1290 of 1981 also fails. 10. Thus, from what we have said above, we find that the levy of surcharge under the Tamil Nadu Sales Tax (Surcharge) Act, 1971 and of the additional tax under the Tamil Nadu Additional Sales Tax Act, 1970 by the assessing authority, as upheld by the appellate authority and the Tribunal, does not call for any interference at our bands. Both the tax revision cases, therefore, fail and are dismissed. There will be no order as to costs.
O R