RAZACK TRADING CO. Vs. STATE OF TAMIL NADU
STATE TAXATION TRIBUNAL
Razack Trading Co.
STATE OF TAMIL NADU
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P.Muthusamy, Judicial Member -
(1.) THE assessees are the petitioners in both the (tax cases) revisions in respect of the levy of purchase tax on chillies and jaggery under Section 7 -A of the TNGST Act, 1959 on Rs. 13,88,871 and Rs. 28,165 respectively and also' levy of penalty of Rs. 69,444 under Section 12(5)(iii) of the TNGST Act calculated at 100 per cent of the tax due for the assessment year 1982 -83 (chillies).
(2.) THE Razack Trading Company, the petitioners herein, are the assessees on the files of the Deputy Commercial Tax Officer, Ariyalur and dealers in chillies and coriander and reported a total and taxable turnover of Rs. 22,79,202.25 and Rs. 28,25,838.35, but the assessing authority after verifying the records determined the total and taxable turnover at Rs. 55,00,526 and 17,00,325 respectively. The assessing authority in his order dated February 28, 1984 held that the purchase value of the chillies sold to the exporter Allanasons (P) Limited, Bombay at Rs. 1,38,871 had to be necessarily taxed at 5 per cent and under Section 7 -A(1)(c) of the TNGST Act, as the goods were despatched to a place outside the State except as a direct result of inter -State sales ; besides the sale value of jaggery Rs. 28,615 had to be taxed at 5 per cent as there was no proof for the export sale, and also levied penalty at 150 per cent of the tax due under Section 12(5)(iii) of the TNGST Act on the ground that the assessees wilfully suppressed the taxable turnover of chillies of Rs. 13,88,871 during the assessment year 1982 -83. Aggrieved by the said order the assessees preferred appeals in A.P. No. 321 of 1984 and 353 of 1984 before the Appellate Assistant Commissioner, Tiruchirapalli against the levy of purchase tax at 5 per cent under Section 7 -A(1)(c) of the TNGST Act on the purchase value of the chillies and on the sale value of jaggery and also against the levy of penalty under Section 12(5)(iii) for the wilful suppression of the turnover of chillies as stated above. The Appellate Assistant Commissioner dismissed both the appeals by confirming the findings of the assessing authority that the sale by the assessees to Allanasons (P) Ltd., Bombay (chillies) was not as a direct result of sale in the course of inter -State trade or commerce and thereby it became liable to tax under Section 7 -A(1)(c) of the TNGST Act especially the turnover of Rs. 13,88,871 had been the purchase turnover of chillies effected from the non -dealers, and so also confirmed the assessment at five per cent of Rs. 28,615 for jaggery as there was no proof to substantiate that the sale of jaggery was for export, and regarding the penalty it was reduced from 150 per cent to 100 per cent by refixing at Rs. 69,444 of the tax due (chillies).
(3.) AGAINST the said order the assessees preferred appeals in MTA Nos. 339 of 1995 and 338 of 1995 before the Tamil Nadu Sales Tax Appellate Tribunal (Additional Bench), Madurai which by its common order dismissed both the appeals by confirming the findings of the first appellate authority in total by rendering specific findings that the goods were sent to a place outside the State on consignment sales. Thereafter the assessees preferred revisions before the High Court of judicature at Madras in Tax Cases (Revision) Nos. 706 and 707 of 1986 and the same had been transferred before this Special Tribunal by virtue of the provision under Section 19 of the Tamil Nadu Taxation Special Tribunal Act, 1992 in T.C. (R) Nos. 287 and 288 of 1997 respectively.;
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