TMI Blog2014 (2) TMI 714X X X X Extracts X X X X X X X X Extracts X X X X ..... t sale - As far as Section 7A is concerned, it deals with levy of purchase tax. This is a charging Section by itself. A reading of Section 7A shows that the chargeability under Section 7A is attracted under stated circumstances. Without purchase of goods from any registered dealer or other persons whose sale or purchase, though liable to tax, does not suffer tax by reason of circumstances given under Sections 3 and 4 and such purchased goods were used and consumed in the manufacture of other goods or for sale or otherwise or in any manner other than by way of sale in the State or despatched them to a place out the State except as a direct result of sale or purchase in the course of inter-State trade or commerce. Then alone the charge under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... General Sales Tax Act and hence, the vendors' sales were not assessed to sales tax. The assessee pointed out that the sellers were already assessed to tax by the respective jurisdictional authorities; hence, levy of tax under Section 7A of the Act was bad. The Appellate Authority pointed out that in the absence of any evidence to show that the vendors were already assessed, the levy of tax was justified. Aggrieved by the same, the assessee went on appeal before the Sales Tax Appellate Tribunal. 4. Before the Tribunal, the assessee placed reliance on the decision reported in 66 STC 58 - TVL. VASU GENERAL STORES v. STATE OF TAMIL NADU as well as on the subsequent decision of the Apex Court reversing the said decision reported in AIR 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the purpose of levying tax. 6. In so contending, learned senior counsel placed reliance on the decision of the Apex Court reported in AIR 1999 SUPREME COURT 1516 SHANMUGA TRADERS v. STATE OF TAMIL NADU and contended that even though the said decision was with reference to the declared goods, the law declared therein would apply to the facts of the case on hand. In any event, none of the conditions under Section 7A of the Act would attract to the case herein. In the above circumstances, the charge itself is not correct. 7. Per contra, learned Special Government Pleader pointed out that given the fact that the first seller was not taxed herein, the assessee being the first seller, the liability was rightly fixed under Section 7A of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the circumstances given under Section 7A of the Act stood attracted to the facts herein, we do not find that the Revenue has a case for assessing the turnover under Section 7A of the Act. Thus on the admitted facts herein, we do not find any ground to sustain the assessment. 11. As far as the reliance placed on the decision of the Apex Court reported in AIR 1999 SUPREME COURT 1516 SHANMUGA TRADERS v. STATE OF TAMIL NADU is concerned, it is no doubt true that it related to a case of a declared goods. Nevertheless, it may be seen therein that the Apex Court pointed out that when a person purchases scrap from the Tamil Nadu Electricity Board and sells, he is effectively the first seller liable for tax. Depending on what that purchaser i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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