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TMI Blog2014 (2) TMI 714X X X X Extracts X X X X X X X X Extracts X X X X ..... granting exemption on a turnover of Rs. 69,443/- on the second sale of bakery products. However, finding that the sale of bakery products had not suffered tax earlier, the assessment was sought to be revised under Section 16 of the Tamil Nadu General Sales Act to bring the turnover for assessment under Section 7A(1)(a) of the Act. 3. The assessee filed an appeal as against the said order of reassessment, that the assessee's vendors' total turnover was less than Rs. 1 lakh, which was well below the chargeable limit under Secton 3(1) of the Tamil Nadu General Sales Tax Act and hence, the vendors' sales were not assessed to sales tax. The assessee pointed out that the sellers were already assessed to tax by the respective jurisdi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty to pay tax under the Act is fixed on the first seller, on the mere fact that the Revenue could not assess the dealer on account of the total turnover well below the required minimum under Section 3 of the Act, the levy could not be shifted to the assessee, who is admittedly a second seller and the notification could not be invoked. When the point of levy of tax is fixed under the Act, namely the first seller, it is not open to the Revenue to shift the point of sale to the assessee. Thus there is no taxable sale effected on the part of the assessee for the purpose of levying tax. 6. In so contending, learned senior counsel placed reliance on the decision of the Apex Court reported in AIR 1999 SUPREME COURT 1516 SHANMUGA TRADERS v. STATE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ffer tax by reason of circumstances given under Sections 3 and 4 and such purchased goods were used and consumed in the manufacture of other goods or for sale or otherwise or in any manner other than by way of sale in the State or despatched them to a place out the State except as a direct result of sale or purchase in the course of inter-State trade or commerce. Then alone the charge under Section 7A stands attracted. On the admitted fact herein that the assessee, a dealer in bakery products, had effected sales locally only and that none of the circumstances given under Section 7A of the Act stood attracted to the facts herein, we do not find that the Revenue has a case for assessing the turnover under Section 7A of the Act. Thus on the ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Apex Court held that the iron and steel sold by the Tamil Nadu Electricity Board was not liable to tax either at the point of first sale or any subsequent sale in the State. It also pointed out that the State Act does not fix the single point of the levy at the first taxable sale, it fixes it at the point of first sale. 12. Even assuming that the assessment is not under Section 7A of the Act, extending the said decisions to the provisions herein, Section 3(1) of the Act fixes the liability at the point of first sale, thus by applying the law declared by the Supreme Court in the above stated decision, particularly in paragraph 14, in the absence of any provision to say that the point of first sale is treated as point of first taxable sale, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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