- (1.) The above tax revisions are preferred by the Department aggrieved against the orders passed by the Tamil Nadu Sales Tax Appellate Tribunal (Main Bench), Chennai in T.A. Nos.147/05, 148/05, 168/05, 129/08, 141/08 and 109/09.
(2.) The respondent in these cases is a dealer in readymade garments and general goods and an assessee on the files of the Commercial Tax Officer, Anna Salai, III Assessment Circle, Chennai. All the above tax revisions relate to assessment orders for the years 2001-2002, 2002-2003, 2003-2004, 2004-2005, 2005-2006 and 2006-2007.
(3.) The issue involved in all these cases is that the Assessing Officer had rejected the claim of deduction from the total turnover, the sales tax portion, on the ground that though sales tax was not charged separately , the bills revealed that the dealer had charged the cost of goods including sales tax and not collected tax separately and in terms of Explanation (1A) to Section 2 (r) of the Tamil Nadu General Sales Tax Act, 1959, any amount collected by a dealer by way of tax should not be included in the turnover. Accordingly, the Assessing Officer revised the assessment in respect of each year levying tax on the entire amount without giving the benefit of the taxable portion of the turnover. The appeals by the assessee to the first appellate authority was futile against which six appeals were filed before the Tribunal. The facts, relevant to each assessment year, as set out by the Tribunal in its order, are as follows : TA 168/2005 (200102) (TNGST) : The appellant were originally assessed on a total taxable turnover of Rs.7,70,43,317/= and Rs.6,92,69,581/= respectively for the assessment year 20012002 under the TNGST Act, 1959, in the proceedings dated 16.7.2003. The taxable turnover inter alia includes an amount of Rs.31,23,110/= collected towards sales tax which was rejected by the Assessing Officer on the ground that the amount was collected without showing it separately in the invoices and however shown including in the sales price. Hence, the Assessing Officer had disallowed the claim of exemption as sales tax collection and assessed the above turnovers to tax. On appeal, the first appellate authority had dismissed the appeal for the reasons stated thereon. Hence, aggrieved, the appellants preferred this present appeal. TA 147/2005 (200203) (TNGST) : The appellants were originally assessed on a total and taxable turnover of Rs.9,68,42,900/= and Rs.9,63,51,644/= respectively for the assessment year 20022003 under the TNGST Act, 1959, in the proceedings dated 13.2.2004. In this year also, the verification of the sale bills and sales registers revealed that the dealer had sold goods by charging the cost of goods including sales tax, surcharge, etc., and in their sale bills, taxes were not shown and collected separately on the cost of the goods. Hence, following the Explanation (1A) to Section 2 (r) of the TNGST Act, 1959, the Assessing Officer had disallowed the claim of exemption as sales tax collection on Rs.45,77,730/= and assessed the turnovers to tax. On appeal, the first appellate authority had dismissed the appeal for the reasons stated thereon. Hence, aggrieved, the appellants preferred this present appeal. TA 148/2005 (200304) (TNGST) : The appellants were originally assessed on a total and taxable turnover of Rs.10,95,61,063/= and Rs.10,91,73,678/= respectively for the assessment year 20032004 under the TNGST Act, 1959, in the proceedings dated 30.6.2004. In this year also, the verification of the sale bills and sales registers revealed that the dealer had sold goods by charging the cost of goods including sales tax, surcharge, etc., and in their sale bills, taxes were not shown and collected separately on the cost of the goods. Hence, following the Explanation (1A) to Section 2 (r) of the TNGST Act, 1959, the Assessing Officer had disallowed the claim of exemption as sales tax collection on Rs.50,49,873/= and assessed to tax. On appeal, the first appellate authority had dismissed the appeal for the reasons stated thereon. Hence, aggrieved, the appellants preferred this present appeal. TA 141/2008 (20042005) (TNGST) : The appellants were originally assessed on a total and taxable turnover of Rs.13,90,78,192/= and Rs.13,55,67,621/= along with resale turnover of Rs.32,19,958/= as against the reported total and taxable turnover of Rs.13,27,33,895/= and Rs.12,92,23,324/= along with resale turnover of Rs.32,19,958/= respectively for the assessment year 20042005 under the TNGST Act, 1959, in the proceedings dated 12.12.2005. In this year also, the verification of the sale bills and sales registers revealed that the dealer had sold goods by charging the cost of goods including sales tax, surcharge, etc., and in their sale bills, taxes were not collected separately on the cost of the goods. Hence, following the Explanation (1A) to Section 2 (r) of the TNGST Act, 1959, the Assessing Officer had disallowed the claim of exemption as sales tax collection on Rs.63,44,297/= and assessed to tax. On appeal, the first appellate authority had dismissed the appeal for the reasons stated thereon. Hence, aggrieved, the appellants preferred this present appeal. TA 129/2008 (20052006) TNGST) : The appellants were originally assessed on a total and taxable turnover of Rs.17,88,38,682/= and Rs.17,53,01,211/= along with resale turnover of Rs.31,46,741/= as against the reported total and taxable turnover of Rs.17,88,50,332/= and Rs.17,53,01,211/= along with resale turnover of Rs.31,46,741/= respectively for the assessment year 20052006 under the TNGST Act, 1959, in the proceedings dated 31.08.2006. The verification of the sale bills and sales registers revealed that the dealer had sold goods by charging the cost of goods including sales tax, surcharge, etc., and in their sale bills, taxes were not collected separately on the cost of the goods. Hence, following the Explanation (1A) to Section 2 (r) of the TNGST Act, 1959, the Assessing Officer had disallowed the claim of exemption as sales tax collection on Rs.80,85,081/= and assessed to tax. On appeal, the first appellate authority had dismissed the appeal for the reasons stated thereon. Hence, aggrieved, the appellants preferred this present appeal. TA 109/2009 (20062007) (TNGST) : The appellants were originally assessed on a total and taxable turnover of Rs.15,84,78,660/= and Rs.15,43,79,435/= along with resale turnover of Rs.38,75,238/= as against the reported total and taxable turnover of Rs.15,14,65,866/= and Rs.14,73,66,643/= along with resale turnover of Rs.38,75,238/= respectively for the assessment year 20062007 under the TNGST Act, 1959, in the proceedings dated 29.06.2007. In this year also, the verification of the sale bills and sales registers revealed that the dealer had sold goods by charging the cost of goods including sales tax, surcharge, etc., and in their sale bills, taxes were not collected separately on the cost of the goods. Hence, following the Explanation (1A) to Section 2 (r) of the TNGST Act, 1959, the Assessing Officer had disallowed the claim of exemption as sales tax collection on Rs.70,12,791/= and assessed to tax. On appeal, the first appellate authority had dismissed the appeal for the reasons stated thereon. Hence, aggrieved, the appellants preferred this present appeal.";