2014 (1) TMI 210

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..... and 1989-90 respectively. 2. The assessee purchased raw materials like M.S.Scrap from unregistered dealers and used the same in the manufacture of rough castings. The facts narrated show that the assessment were revised treating the purchase turnover as suppression and hence were brought to tax under Section 7A of the Tamil Nadu General Sales Tax Act, 1959. Penalty was also levied thereon under Section 16(2) of the Tamil Nadu General Sales Tax Act, 1959. 3. As far as the present case, viz., TC(R) No.55 of 2009 is concerned, it relates to the assessment year 1992-93. The assessee manufactured machinery parts and sold as rough castings and paid tax at 4%. Considering the fact that the assessee had not reported the turnover for assessment un .....

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..... purchased by the assessee from unregistered dealer, rightly the assessment was made under Section 7A of the Act. In so holding the Tribunal also levied penalty. 8. Aggrieved by the same, the present revision by the assessee raising the following questions of law: "1. Whether in the facts and circumstances of the case, the Tribunal is right in upholding the levy of purchase tax under Section 7-A on the iron scrap purchased by the petitioner when the goods sold by the petitioner also fails under the very same sub entry (i) of Entry 4 of the Second Schedule to the TNGST Act, 1959, by virtue of which they ought to be reckoned with as the same commercial commodity? 2. Whether in the facts and circumstances of the case, the Tribunal is right .....

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..... isions of the Act. 10. In the circumstances, satisfied with the reasoning stated by the Sales Tax Appellate Tribunal on facts, we reject the revision filed by the assessee. 11. As regards the levy of penalty under Section 12(5)(iii) of the Act, as already seen in the preceding paragraphs, the assessee consistently took a plea that in view of the sufferance of tax on the manufacture of rough castings, there could be no liability under Section 7-A of the Act for the purchases made. The Assessing Officer, however, pointed out that the assessee had not reported the turnover of scraps purchased for the purpose of manufacture of rough castings. In that view of the matter, penalty under Section 12(5)(iii) of the Act was levied. 12. In the decis .....

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