9911796707
TMI Blog2013 (11) TMI 405X X X X Extracts X X X X X X X X Extracts X X X X ..... Hides and skins and is an exporter and tanned them and effected local sales. The assessee also purchased raw skin locally and tanned them and sold them locally. 3. The Enforcement Wing Officers inspected the place of business of the assessee on 05.10.1989, wherein, they found 27 pieces of finished leather besides discrepancies in stocks. Based on the results, the Assessing Officer issued a notice of assessment that the claim of exemption would only be allowed based on the formula. The dealers have objected to the restriction of claim of exemption on second sales on the plea that they had purchased semi finished hides for Rs.28,50,625/- and there was no misclassification of goods of first and second sales. The proposals to assess the dealer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Authority allowed the assessee's claim for entire turnover as second sales exemption. 5. Disagreeing with the order of the Appellate Assistant Commissioner that the same was prejudicial to the interest of the Revenue, the Joint Commissioner-III (SMR) issued notice under Section 34 of the Tamil Nadu General Sales Tax Act to revise the order of the Appellate Assistant Commissioner. Applying the decision reported in [1968] 21 STC 25 (State of Madras Vs. Narayana Nadar & Co.), the Joint commissioner justified the formula adopted on second sales exemption. The assessee placed its objections along with written statement and submitted that in the absence of any misclassification shown, the exemption could not be rejected. Referring to the decisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the same were related to local purchase of tanned skins and not with reference to either inter-State purchases of raw skins or local purchase of raw skins. In the light of the details supporting second sale exemption not being there and that the assessee had purchased tanned skins locally, raw skins locally as well as from outside the State and tanned and sold them as tanned skin, the one and only method by which the turnover pertaining to second sales could be arrived, is by the adoption of formula as under:- Inter-State purchase ------------------------- X Local sale Local purchase Thus in the light of the above, the Joint Commissioner restored the order of assessment on a turnover of Rs.44,53,760/-. Aggrieved by this, the present a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... over. The Apex Court pointed out that where the stock book is not maintained, it leads to the conclusion that the account books are not reliable or that the particulars are not properly verifiable. In such circumstances, there was no grounds for holding that the account books, irrespective of the non-maintenance of the stock books, should be accepted. 10. As far as the present case is concerned, the assessee does not deny the fact that it purchased raw skins locally and from outside the State. It purchased tanned skins locally and effected sales locally as well as effected export sales. It is not denied by the assessee that it purchased the raw skins and sold them locally as such. Considering the raw skins purchased locally and from outsid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the basic documents required to be maintained in the case of manufacturer and dealer for first and second sales is the maintenance of stock account for goods attracting different rates of taxation at different points. 12. Admittedly, the assessee had not maintained any accounts either relating to first sales or second sales, but however, claimed second sales exemption. Even though learned counsel for the assessee made grievance as regards Rs.61,01,040/-, the Assessing Officer admitting only 27% as for second sales exemption, the only course available under the stated circumstances was to take note of the purchase of raw skins from inter-State and local purchase of tanned skins, sale of tanned skins locally and of export. Thus, on an a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
