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2011 (4) TMI 1224 - HC - VAT and Sales TaxLevy of tax u/s 7A of the Tamil Nadu General Sales Tax Act, 1959 - Imposition of penalty under Section 12(5)(iii) - Held that:- In order to make the recorded cassettes marketable under its name, the assessee had pasted its name therein, apart from printing the details of contents of the recorded cassettes by purchasing inlay cards as well as stickers from unregistered dealers, got them printed and pasted them in the plastic case, in which recorded the cassettes were laid and sold. A look at the cassettes placed before this Court shows that the ownership of the cassettes were vested with the assessee and that the sale is under the brand name of the assessee - assessee had thus gone further on the sale of the cassettes by putting them in the plastic case with its name printed therein, with other details of the contents by getting them printed on the blank papers purchased, the provision of Section 7-A(1)(a) of the Tamil Nadu General Sales Tax Act, 1959, stands attracted, particularly on the aspect of the purchase of the white card boards from unregistered dealers and printed with materials for further pasting them on the cassettes for sale. Section 7-A(1)(a) of the Act applies not only to a case of manufacture of other goods for sale, but also to cases falling under 'otherwise', which means, dealing with the materials purchased in any other manner too, we have no hesitation in holding that the purchase of white boards from the unregistered dealer and got them printed and pasted in a plastic case, in which cassettes are laid and sold, certainly would fall under the term 'otherwise' for the purpose of making levy under Section 7-A(1)(a) of the Tamil Nadu General Sales Tax Act, 1959. Levy of penalty under Section 12(5)(iii) of the Tamil Nadu General Sales Tax Act, it is not denied that the turnover was available in the books of accounts and on a bona fide impression as to the non liability the said turnover was not included in the taxable column - it is held that no levy of penalty is warranted on the assessment made solely relying on the turnover available in the books of accounts. Following the above said decision, we set aside the order of penalty imposed under Section 12(5)(iii) of the Tamil Nadu General Sales Tax Act - Decided partly in favour of assessee.
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