TMI Blog1962 (11) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... er in the assessment on the ground that they covered what they described as "accommodation sales". The respondents having failed before the joint Commercial Tax Officer, preferred an appeal to the Appellate Authority, but again failed. On a further appeal to the Tribunal, the respondents succeeded. The Tribunal held that the turnover of Rs. 56,300 represents accommodation sales and the petitioners were entitled to have this excluded from the taxable turnover. The State of Madras has preferred this revision petition against the said order of the Tribunal. The only question that arises for consideration in this revision petition is whether the sale value of Rs. 56,300 included in the assessees' turnover, can be excluded on the ground that it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he turnover of the Bombay dealer. Rule 5(1)(c) of the Madras General Sales Tax (Turnover and Assessment) Rules provides for exclusion of turnover in respect of accommodation sales. That provision reads: "All amounts for which the dealer sells articles which are not in his stock but which are obtained by him from another dealer specially to accommodate a particular customer and are immediately sold to such customer, provided that the sale is entered in the accounts then and there as an accommodation sale together with the name of the dealer from whom the articles were obtained and provided that the accommodating dealer does not make a profit out of the transaction." But for this provision, the turnover, as per the definition of "gross turn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h between the clearing of the second consignment and the actual date of the invoice. It appears that the mills required these materialsplates and angles-for construction of premises and their contractor was one Nirmala Engineering Works. The consignments appear to have been actually cleared by these engineers on behalf of the mills. A letter written by the engineers to the assessees in the following terms was placed before the Tribunal: "This is to inform you that we have taken delivery of eight wagon loads of angles and plates from you directly from Coimbatore goods shed on the same day they reached Coimbatore purely on behalf of Messrs S.R.C. Mills Ltd., Tiruppur, against their fabrication order No. IS. 15/1957 dated 16th October, 1957. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We have looked into the entries ourselves and we are satisfied that this condition of the rule, namely, that the account should show these transactions as accommodation sales has been complied with. The name of the dealer is, however, not shown as part of the journal entry. But the accounts taken as a whole sufficiently establish that in respect of these transactions, the name of the Bombay dealer Madanlal Shah has been disclosed. In our opinion, all the requisites of rule 5(1)(c) are fully present and certainly there is no reason why this transaction should not be treated as being accommodation sale. There is, however, one circumstance, which appears to be against the assessees' contention and it is this. They have issued 'C' Form certifi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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