surcharge at 5% is leviable from 01.07.2002 on tax due. Further, it was stated that during the year 1999-00, the hospital management has received a sum of Rs.16,00,000/- as lease rent which is liable to be assessed to tax at 8% u/s.3-A of the Tamil Nadu General Sales Tax Act, 1959. Further, it was alleged that the transactions i.e. receipts of lease rent fall under definition ‘sale’ in section 2(n)(iv) of the Tamil Nadu General Sales Tax Act, 1959 and also comes under the definition of ‘Business’ in section 2(d)(ii) of the TNGST Act, 1959 and hence, the Management of the petitioner hospital should have got themselves registered under the provisions of the Act and reported receipts of lease rent and paid taxes thereon. With these allegations, the respondent proposed to determine the total and taxable turnover under the provisions of the Act and assessed the tax for the relevant Assessment Years. Apart from that, the respondent also proposed to levy penalty at 150% on the tax due u/s.12(3)(a) of the Act. Petitioner was directed to file their objections, which was filed. Respondent, after receiving objections, had completed the assessment by the impugned orders dated 01.07.2004 stating that the machineries which were
