STATE OF TAMIL NADU Vs. SUBRAMANIA CHETTIAR

JUDGEMENT

(1.) THIS revision under section 38(1) of the Tamil Nadu General Sales Tax Act, 1959 in relation to inter-State sales coming under the Central Sales Tax Act, 1956 (hereinafter referred to as "the Act") is by the State of Tamil Nadu.

(2.) THE respondent-assessee is a dealer in groundnut kernel, rice and gunnies at Tiruchy. During the check of accounts, the assessing authority found that the assessee had effected inter-State sales of groundnut kernel and rice during the year 1978-79 to the extent of Rs. 18, 10, 690 and Rs. 21, 27, 862 respectively, in all, amounting to Rs. 39, 38, 552. Though the sales of rice and groundnut kernel were not taxable, the assessing authority estimated the value of gunny bags used for packing purposes in respect of the said sales and assessed the said estimated value to tax under the Act.

(3.) THE value of the abovesaid 23, 918 gunnies was estimated at Rs. 71, 754 at the rate of Rs. 3 per gunny. Aggrieved by the assessment on the abovesaid estimated value of gunnies, the assessee preferred appeal to the Appellate Assistant Commissioner. But, since the Appellate Assistant Commissioner also agreed with the finding of the assessing authority and dismissed the appeal, the assessee preferred second appeal to the Appellate Tribunal. THE Tribunal held that the conclusion of the Appellate Assistant Commissioner and the assessing authority that the abovesaid gunny bags used as containers of groundnut kernel and rice were chargeable to sales tax, was unsustainable and allowed the appeal. Aggrieved the State has preferred this revision.