VENKATASWAMI, J. - (1.) THIS tax case (appeal) is preferred against the order of the erstwhile Board of Revenue in B.P. Rt. No. 425 of 1980 dated 18th February, 1980.
(2.) THE appellant-assessee returned a total and taxable turnover of Rs. 5, 68, 581.22 and "NIL" respectively, for the assessment year 1973-74 under the Tamil Nadu General Sales Tax Act, 1959 (hereinafter called "the Act"). THE Joint Commercial Tax Officer, Tondiarpet, found that purchases of iron and steel for Rs. 1, 51, 747.66 were not supported by proper purchase bills and further the assessee was found to have purchased goods for Rs. 30, 034.38 from outside the State. THE sale out of local purchases was estimated at Rs. 1, 74, 509.80. On that basis, the assessing officer, by order dated 24th January, 1975, determined the total and taxable turnover at Rs. 5, 67, 509 and Rs. 2, 11, 443 respectively. Aggrieved by the order of the assessing officer, the appellant preferred and appeal to the Appellate Assistant Commissioner. THE Appellate Assistant Commissioner, on a perusal of the records, found that some of the local purchases of iron and steel for a sum of Rs. 1, 10, 110 out of Rs. 1, 51, 747.66 were from persons who were registered dealers and hence the same could not be subjected to tax when the appellant-assessee disposed of the same. Accordingly, the Appellate Assistant Commissioner deleted from taxable turnover Rs. 1, 10, 110. The Board of Revenue, while reviewing the order of the Appellate Assistant Commissioner, found that the turnover amounting to Rs. 1, 10, 110 represents the purchases from three dealers, namely, Peeman Steel Corporation, Mohideen Traders and Manickam Enterprises of which, excepting Peeman Steel Corporation, the other two dealers, though were originally registered dealers, closed their business during 1973-74 and, therefore, the sales of iron and steel by those two dealers cannot be considered as taxable sales enabling the appellant to claim exemption on the sales of goods purchased from them. Accordingly, a notice was issued, inviting objections.
(3.) AFTER hearing the appellant through its counsel and overruling the objections, the Board of Revenue held that the purchases from two dealers, namely, Mohideen Traders and Manickam Enterprises, amounting to Rs. 1, 06, 351 are not eligible for exemption, and on that ground, revising the order of the Appellate Assistant Commissioner, included that turnover in the taxable turnover.;