The Assistant Commissioner (St) (Fac) Vs S.R.Raja Agencies

The Assistant Commissioner (ST)(FAC) Tambaram Assessment Circle Chennai 45. .. Appellant Vs. S.R.Raja Agencies (now known as S.R.Raja Cements) Rep. by its Proprietor No.34, Ramakrishna Street West Tambaram Chennai – 600 045. .. Respondent

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Prayer : Appeal under Clause 15 of Letters Patent against the order dated 25.06.2021 passed in W.P.No.20172 of 2020.

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For Appellant : Mr.Haja Nazirudeen Additional Advocate General

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https://www.mhc.tn.gov.in/judis

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W.A.No.1550 of 2022

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Assisted by Mr.TNC Kaushik Additional Government Pleader

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For Respondent : No appearance

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JUDGMENT

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(Judgment of the Court was delivered by Mohammed Shaffiq,J)

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The writ appeal is filed challenging the order of the learned Single Judge insofar as it finds that levy of additional sales tax in the hands of the respondent who is an authorised distributor / agent of M/s.Zuari Cement (Zuari) is unsustainable, in view of the fact that additional sales tax had been discharged by its principal, viz., M/s. Zuari Cements including on the turnover of sales of the respondent herein, in terms of Explanation 1 to Section 2(1)(aa) of Tamil Nadu Additional Sales Tax Act, 1970. For the sake of clarity it may be relevant to extract Section 2(1)(aa) of Tamil Nadu Additional Sales Tax Act, 1970, which relied upon by the learned Judge while finding that levy of Additional Sales Tax on the respondent herein cannot be sustained, reads as under:

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“Sec. 2(1)(aa) The tax Payable under the Tamil Nadu General Sales Tax Act, 1959 (Tamil Nadu Act 1 of 1959) (hereafter in this section

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W.A.No.1550 of 2022

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referred to as the said Act), shall, in the case of a dealer including the principal selling or buying goods through agents taxable turnover [for a year exceeds ten crores of rupees], be increased by an additional tax, calculated at the following rates, namely:

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RATE OF TAX

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[(i) Where the taxable turnover exceeds ten 1 per cent of the crores of rupees but does not exceed taxable turnover twenty-five crores of rupees.

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(i-a) Where the taxable turnover exceeds 1.5 per cent of the twenty-five crores of rupees but does taxable turnover] not exceed fifty crores of rupees.

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(ii) Where the taxable turnover exceeds fifty 2 per cent of the crores of rupees but does not exceed one taxable turnover hundred crores of rupees.

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(iii) Where the taxable turnover exceeds one 2.5 per cent of the hundred crores of rupees but does not taxable turnover exceed three hundred crores of rupees

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(iv) Where the taxable turnover exceeds 3 per cent of the three hundred crores of rupees taxable turnover

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Explanation I. - “?Taxable Turnover?” for the purpose of this clause in respect of a principal selling or buying goods [....] through agents shall be the aggregate taxable turnover of all his agents relating to the sale or purchase of the goods of such principal within the State.

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Explanation IV. - 'Taxable turnover' for the purpose of this clause does not include the turnover of resale, taxable under Section 3-H of the said Act.”

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The learned Additional Advocate General would submit that the order of the learned Single Judge insofar as it finds that the principal, viz., M/s. Zuari Cements (Zuari), had discharged the additional sales tax on the turn over of sales effected by the respondent, in its capacity as agents of M/s.Zuari Cements (Zuari) in its entirety may not be factually correct and requires verification.

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We find that the above submission is no reason to interfere with the order of the learned Single Judge. However, if for any reason, the appellant finds that the additional sales tax on the turn over of sales effected by the respondent in its capacity as agent of M/s.Zuari Cements(Zuari) has not been remitted in full, in other words, something is left to be paid by the principal viz., M/s.Zuari Cements(Zuari) in terms of Section 2(1)(aa) of the Tamil Nadu Additional Sales Tax Act, it is open to the revenue to take appropriate action in accordance with law.

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W.A.No.1550 of 2022

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