S.Thangaraj, J. (Chairman) - (1.) THIS tax appeal was filed against the order passed by the Joint Commissioner (C.T.) (SMR), Chepauk, Chennai 5 in Ref. No. F1/16607/96 in SMR No. 356/96 dated May 25, 1998.
(2.) LEARNED Joint Commissioner (CT) (SMR), Chennai 5 in suo motu revision, issued a notice against the order passed by the Appellate Assistant Commissioner (CT), Tirunelveli in A.P. No. 345/95 dated August 16, 1995. The appellant appeared before the Joint Commissioner and resisted the notice issued by the said authority. The Joint Commissioner, in his order, has stated that the Kerala dealer who purchased the newsprint from the appellant and consigned the same for printing as news magazines and the resultant news magazines were said to be despatched to Kerala by Sivakasi printers. After the printing what moved out of the State were only news magazines and not newsprint with which the assessee is concerned, and inasmuch as the sale would fall under the purview of the Tamil Nadu General Sales Tax Act, 1959, the order of the Appellate Assistant Commissioner is liable to be set aside. On that ground, the learned Joint Commissioner (CT) (SMR) has set aside the order of the Appellate Assistant Commissioner and passed the impugned order. Learned counsel for the appellant - -Thiru K.J. Chandran has contended that what is transported is immaterial. As the newsprint purchased by the Kerala dealer from the assessee has been transported to Kerala, it is an inter -State sale.
(3.) PER contra, learned Senior Standing Counsel for the Revenue has contended that the newsprint purchased by the Kerala dealer from the assessee was not transported to Kerala and on the contrary, they were sent to Sivakasi for printing and thereafter news magazines were transported to Kerala. When once the newsprint was sent to Sivakasi and news magazines were printed therein, it is exigible to tax under the Tamil Nadu General Sales Tax Act, 1959.;