TMI Blog1957 (9) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... elies upon a notification of the Government of Orissa (No. 8727- C.T. 66/49 F, dated 1st July, 1949), wherein the sales of gold ornaments by a manufacturer, who charged separately for the value of gold and the cost of manufacture, are exempted from sales tax. On an enquiry made by the Department, after issue of proper notices under the Act, the assessments for the quarters ending on 30th September, 1952, to the quarter ending on 31st March, 1954, were closed and the petitioner obtained exemption from sales tax on his sales of gold ornaments on the basis of the above Notification. In spite of the above position, however, the Sales Tax Officer, Intelligence Circle, Cuttack, had issued a notice to the petitioner on 28th September, 1955, under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is further stated there that it appears that the orders of the previous assessing officers exempting the petitioner from tax on sales of gold ornaments are erroneous for which the notice had been issued for reopening the assessment under section 12(7) of the Act. It is further asserted on behalf of the opposite party that preliminary esquires conducted go to show that the petitioner is not a manufacturer of gold ornaments and that what he charges separately for the so-called cost of manufacture is not his actual cost of making the gold ornaments. 3.. Mr. Venkata Subramanyam, a leading Advocate of Madras, who appeared before us on behalf of the petitioner, does not contest the position that the proceedings under section 12(7) of the Act ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of manufacture is not his actual cost of making the gold ornaments. We have observed above, the powers under sub-section (7) of section 12 are very wide. The fact remains that the petitioner has not produced his accounts for the examination of the departmental authorities. We are not sure whether there has been any escapement or under-assessment due to the dealer having concealed particulars of his turnover. This would be clarified only when the Sales Tax Officer has the advantage of a full and close examination of the accounts himself. 5.. There may be any other reasons on account of which the reopening of the previous assessment may be justified. The reason may transpire only after close scrutiny of the accounts afresh. Following the d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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