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2019 (5) TMI 125 - AAAR - VAT and Sales TaxValidity of reassessment order - stock transfer or sale? - HELD THAT:- From the submissions of the appellant one thing is clear that the appellant has not disputed the manner in which the goods have moved from Tamil Nadu to Pondicherry and from Pondicherry to Tamil Nadu and other States. The appellant has admitted that same lorry was used. The Assessing Officer has rightly concluded that the appellant has circuitously transferred the goods to their already identified purchasers in various places in Tamil Nadu and other States via Pondicherry so as to evade payment of tax. The Assessing Officer has further rightly concluded that in the scheme of supplying the goods to customers in Tamil Nadu and other States, the intervention of the Pondicherry Branch is only as a conduit as evidenced by the transport records and the Stock Register maintained at Pondicherry. It is pertinent to note that the Assessing Officer took note of the fact that the appellant did not produce even a single purchase order placed by any customer on its Pondicherry Branch and held that the appellant’s contention that Pondicherry Branch independently received orders and executed them is contrary to facts. We have no reason to disbelieve the statement made by the Assessing Officer that detailed examination of the stock transfers from Tamil Nadu to Pondicherry with reference to the stock book of Pondicherry revealed that in almost all the cases, the goods stock transferred from Tamil Nadu have been sold and dispatched in the same lot to the ultimate buyers in Tamil Nadu and other States - We also find no substance in the submission of the appellant that the Assessing Officer had disallowed the transactions pertaining to transfer of goods to Pondicherry on the basis of a single transaction. The appellant clearly attempted to avoid tax under the TNGST Act and under the CST Act due to Tamil Nadu. We are entirely in agreement with the Assessing Officer’s view expressed in his well-reasoned orders. Unfortunately the Appellant Assistant Commissioner overlooked vital aspects and core issues of the matter and reversed the Assessing Officer’s orders. Appeal dismissed.
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