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2014 (4) TMI 329 - MADRAS HIGH COURTLevy of sales tax – turnover - shame transactions for obtaining loan from bank - Whether Tribunal was justified in ignoring the evidences to show that there was no sale – Held that:- The Revenue does not dispute the fact that there is a charge sheet filed by the CBI authorities as against the Indian Bank in granting loans or offering discounting on sham documents - yet the Tribunal rejected the assessee's case on the ground that no reliance could be placed on the charge sheet to decide whether there was sale transaction or not – Thus, with the proceedings still pending before the Criminal Court on the allegation of fictitious loan transaction dealt with by the Bank and one of the parties being the assessee, no hesitation in setting aside the order passed by the Tribunal insofar as the appeals filed by the assessee are concerned. In the case of one of the group concern relating to a similar transaction, the Sales Tax Appellate Tribunal noted that in the proceedings initiated by the Central Bureau of Investigation against Indian Bank Authority, in the charge sheet filed it was stated that there was no genuine transaction in all these cases and no goods as per LC documents were actually procured/supplied/transported. Based on the proceedings thus taken, the Tribunal held that there was no real business transaction and the entire transaction was false and forged. Thus, the asessement in that case was set aside. There is no justification to draw a different conclusion as far as the present case is concerned. Accordingly, all the Tax Case (Revisions) stand allowed and the order of the Sales Tax Appellate Tribunal is set aside. - Decided in favor of assessee.
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