SRINIVASA AND COMPANY Vs. BOARD OF REVENUE TAMIL NADU CHEPAUK MADRAS 5
HIGH COURT OF MADRAS
SRINIVASA AND COMPANY
BOARD OF REVENUE (TAMIL NADU), CHEPAUK, MADRAS
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VARADARAJAN, J. -
(1.) THIS appeal under section 37 of the Tamil Nadu General Sales Tax Act is by the assessee against the order passed by the Board of Revenue under section 34 of the Act. The assessee returned a taxable turnover of Rs. 33, 691.84 for the year 1971-72 in form A-2. The assessee is a manufacturer of wooden plugs, round blocks, switch-board boxes, etc., and it also supplies those articles on prior orders.
(2.) AFTER finding that there were discrepancies in the rough and fair day-books, that the purchase of timber for Rs. 527.61 on 11th August, 1970, had not been recorded in the accounts, that there was unexplained discrepancy in the cash balance on 3rd August, 1970, as the rough day-book disclosed a cash balance of Rs. 663.82 while the cash balance according to the fair day-book was only Rs. 81.04 and that no manufacturing accounts or order-books was maintained by the assessee, the assessing officer rejected the assessee's accounts as incomplete and incorrect and resorted to the best judgment method and determined the turnover in respect of single point goods at Rs. 7, 279.83 and the turnover in respect of multi-point goods at Rs. 30, 844.38, aggregating to Rs. 38, 124.21, and fixed the total tax at Rs. 1, 180.18 and the balance payable as Rs. 382.99 holding that the turnover of Rs. 7, 279.83 in respect of found blocks, switch boxes, etc., was of electrical goods falling under item 41 of the First Schedule taxable at 9 per cent single point under section 3(2) of the Act.
On appeal by the assessee, the Appellate Assistant Commissioner, while agreeing with the assessing officer that the assessee's accounts are incomplete and incorrect and rejecting the accounts as not reflecting the true state of affairs and resorting to the best judgment method, accepted the assessee's contention that wooden plugs, round blocks and wooden switch boxes are not electrical goods falling under item 41 of the First Schedule to the Act liable to assessment at 9 per cent single point under section 3(2) of the Act, and set aside the assessment in respect thereof under section 3(2) and refixed the estimated turnover at Rs. 35, 213.19 and assessed it under section 7 of the Act.
(3.) THE Board of Revenue exercised its power of suo motu revision under section 34 of the Act and issued notice calling upon the assessee to show cause why the order of the assessing officer taxing the turnover in respect of the round blocks, wooden switch boxes, etc., at the higher rate under section 3(2) of the Act should not be restored on the ground that they are accessories and component parts used exclusively in electrical installations and neither intended nor capable of being used for any other purpose. After considering the written objections of the assessee and hearing the assessee's counsel that round blocks, wooden switch boxes, etc., are not intrinsically electrical goods and they do not satisfy the tests prescribed by this court in Deputy Commissioner of Commercial Taxes v. Ravi Auto Stores the Board found that these materials are essential for the distribution of electrical energy and are electrical goods and it accordingly set aside the order of the Appellate Assistant Commissioner and restored the assessing officer's order in regard to those goods.;
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