STATE OF TAMIL NADU Vs. BANGALORE IYYANGAR BACKERY

JUDGEMENT

(1.) THIS tax case is at the instance of the department and the following substantial question of law is raised for our consideration:-

(2.) THE assessee is engaged in the manufacture and sale of bakery products and for the assessment year 1996-1997 they have reported a total and taxable turnover of Rs.8,33,151/- and Rs.6,17,065/- respectively. THE assessee had claimed exemption on a turnover of Rs.2,16,086/- as second sales of biscuits and chocolates. However the returns submitted by the assessee was not accepted by the Assessing Officer on account of the suppression noticed during the test purchase made by the enforcement officials of the department on 14.12.1996 and on 16.12.1996 as well as the survey conducted in the business premises of the dealer on 5.9.1996, 6.9.1996 and 11.9.1996.

(3.) THE appellate order was taken up by the assessee before the Tamil Nadu Sales Tax Appellate Tribunal and the Tribunal was pleased to set aside the order of the Appellate Assistant Commissioner on the ground that the survey was conducted only on a single day and as such the Assessing Authority was not justified in making reassessment on the basis of such single day survey. By way of a brief order the Sales Tax Appellate Tribunal also quashed the levy of penalty. Aggrieved by the said order, the department has come up with the present tax case.