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2014 (2) TMI 714 - MADRAS HIGH COURTAssessment u/s 7A(1)(a) - Revision u/s 16 - Turnover less than chargeable limit under Secton 3(1) of the Tamil Nadu General Sales Tax Act - Held that:- A perusal of Section 3(1) of the Tamil Nadu General Sales Tax Act, as it stood at the relevant time, shows that in the case of a dealer the liability to pay tax arises when the total turnover exceeded ₹ 1 lakh. In the case of casual trader or agent of a non-resident, the liability is fastened irrespective of sales turnover. Tax at flat rate at 8% was liable to be paid at the point of first 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 Section 7A stands attracted. On the admitted fact herein that the assessee, a dealer in bakery products, had effected sales locally only and that none 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 - Therefore there is no ground to sustain the assessment - Decided against Revenue.
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