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TMI Blog2013 (7) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... D3 inspection report proposal inspite of the fact that the Appellate Tribunal is the final fact finding authority? 2. Whether the findings of the Appellate Tribunal in following the extracting the D3 proposal is in accordance with the principles laid down by this Court in the judgment reported in 146 STC 642 in the case of Madras Granites (P) Ltd., Vs. Commercial Tax Officer, Salem ? 3. Whether the Appellate Tribunal had considered the provisions of Section 12-A of the TNGST Act and the corresponding Rule 18-C of the Rules which prescribes various factors to be considered by the authorities while making assessment under Section 12-A of the TNGST Act ?" 2. The assessee herein is a manufacturer of Electrical Water Heater. The place of bus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the price charged on the sales of the same goods to different customers and the price prevailing in the market. After granting necessary allowances towards the variation in prices and normal profit margin, the assessing authority was to arrive at the market price that should have been charged by the dealer and levy tax on the taxable turnover. The First Appellate Authority further pointed out that the Assessing Officer simply revised the assessment based on the inspection report and the Assessing Officer had not conducted any investigation to find out whether there was any attempt on the part of the assessee to evade payment of tax. In the absence of such materials, on the mere score that the second sale was at a profit of 145% more than t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of assessment, the addition of Rs.8,05,303/- came for consideration only on account of the Inspection Wing Official noting huge Gross Profit difference between the first sale and the second sale. It is no doubt true that the sister concern had effected second sales making high gross profit. Whatever be the merits or demerits on the higher profit, as rightly observed by the First Appellate Authority, for the purpose of assessment under Section 12-A of the Act, the Assessing Officer has to cause enquiry by following the procedures prescribed under Rule 18-C of the Rules. In the absence of any such enquiry, the mere ground that the sister concern had charged higher gross profit by itself could not be a legal ground for making addition of Rs.8 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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