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2010 (10) TMI 937 - HC - VAT and Sales TaxSales tax levied at 5% treating the transaction as outright sale of printed materials overruling the plea of the petitioner that the transactions are by way of execution of works contract - the petitioner was also subjected to penalty under section 22(2) of the Tamil Nadu General Sales Tax Act, 1959, (for short 'the Act') for the alleged excess collection of sales tax at 8% instead of 5% Held that:- On a careful reading of the order of the appellate authority, it is seen that the authorised representative of the petitioner/assessee has made a detailed submission by contending that the assessee undertakes only contract works for executing the orders placed by the customers and there are no materials available before the authorities to hold that the assessee is also manufacturing and selling printed materials in the open market on commercial basis. Though such arguments were advanced, a reading of the order does not indicate consideration of the materials placed by the petitioner. In fact, the learned counsel appearing for the petitioner has produced those materials before us and on a perusal of the same, it appears, prima facie, to us that the petitioner receives orders from the specified customers for printing of ledgers, receipts, bill books, etc. and these works are undertaken and after the printings are completed, the printed materials are supplied to the customers who placed orders. There is absolutely no discussion about the above materials by the appellate authority as well as the Tribunal. In fact, the appellate authority has merely relied upon the earlier finding, viz., that the dealers have sold printed book, forms to the public and on verification of the assessment file found that the assessee had paid tax both at the rate of 8% and 5%, as pointed out by the assessing authority. There are no materials in support of the said finding. Hence, on the said ground alone, the findings of both the appellate authority as well as the Tribunal are liable to be set aside and the matter should be remitted back to the assessing officer for fresh consideration. Tax Case Revision is allowed
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