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2014 (5) TMI 456 - MADRAS HIGH COURTAllowability of Second Exemption - Whether Tribunal was right in affirming the allowance of second sales exemption in respect of 50% of the turnover ordered by the Appellate Assistant Commissioner (CT) when there was no further evidence of movement of goods in addition to the fact that some dealers were non-existent and registration cancelled in respect of some dealers - absence of evidence of movement of goods and dealers non-existent and registration cancelled - Held that:- For the purpose of second sales, it is enough for the assessee to produce the particulars that the purchase was made from the dealer and in such event the burden had been discharged. When the assessee has not produced any material to show that the purchases have been made and the goods had suffered tax that too from the registered dealers, the reliance placed on the above judgment cannot be accepted - Inasmuch as the assessing authority as well as the first appellate authority factually found that the purchases were effected by the assessee from non-existing dealers and their registration certificates were cancelled prior to such purchases, the first appellate authority as well as the Tribunal cannot come to a different conclusion contrary to the materials to hold that the dealers had valid registration certificates on the date of purchase by the assessee - To this extent, the findings of both the first appellate authority and Tribunal are perverse - When once it is found that there were no materials to show that the purchases were made from the dealers with valid registration certificates, the only course open to the authorities is to deny the exemption as to the second sales – Decided in favour of Revenue.
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