Madras High Court
The Assistant Commissioner (St)(Fac) vs S.R.Raja Agencies on 18 February, 2025
Author: Mohammed Shaffiq
Bench: Mohammed Shaffiq
W.A.No.1550 of 2022
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 18.02.2025
CORAM :
THE HON'BLE MR.K.R.SHRIRAM, CHIEF JUSTICE
AND
THE HON'BLE MR.JUSTICE MOHAMMED SHAFFIQ
W.A.No.1550 of 2022
&
C.M.P.No.10219 of 2022
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
Prayer : Appeal under Clause 15 of Letters Patent against the order dated
25.06.2021 passed in W.P.No.20172 of 2020.
For Appellant : Mr.Haja Nazirudeen
Additional Advocate General
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W.A.No.1550 of 2022
Assisted by
Mr.TNC Kaushik
Additional Government Pleader
For Respondent : No appearance
JUDGMENT
(Judgment of the Court was delivered
by Mohammed Shaffiq,J)
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:
“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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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:
RATE OF TAX
[(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.
(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.
(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.
(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
(iv) Where the taxable turnover exceeds 3 per cent of the
three hundred crores of rupees taxable turnover
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.”
2. 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.
3. 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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4. The appeal is disposed of. There shall be no order as to costs.
Consequently, the interim application also stands disposed of.
(K.R.SHRIRAM, CJ) (MOHAMMED SHAFFIQ,J.)
18.02.2025
Index : Yes/No
NC : Yes/No
kpl
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THE HON'BLE CHIEF JUSTICE
AND
MOHAMMED SHAFFIQ,J.
(kpl)
18.02.2025
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