TMI Blog2011 (3) TMI 1519X X X X Extracts X X X X X X X X Extracts X X X X ..... of sales tax law to contend that those invoices do not reflect any sale transactions ? Held that:- It is no doubt true that the assessment order speaks about the conduct of the assessee in not filing the objection before the assessing authority. Whatever be the conduct adopted by the assessee before assessment, in the appeal filed by the Revenue, the assessee had established its case on the loan transaction as well as on other turnover pertaining to lease. The Appellate Assistant Commissioner and the Tribunal considered the materials produced by the assessee. On satisfaction of the explanation offered by the assessee, the Tribunal remanded the matter for de novo consideration. Going by the reasoning of the Tribunal, we do not find any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the film producers of Tamil Nadu. They were also shown as loan of money transaction. On investigation, it was found that the dealers from whom the assessee had purchased raw materials were bogus and benami in nature. Hence, the sales effected by the assessee were treated as first sales or raw films and therefore, they were liable to pay tax under section 3 of the Tamil Nadu General Sales Tax Act, 1959 (hereinafter referred to as, the Act ). The assessing officer pointed out in the order of assessment that the assessee had not filed any objection inspite of an opportunity granted. Hence the assessing officer determined suppressed turnover at ₹ 3,50,00,000 assessable at five per cent. The assessing officer held that the sales in favou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods as per letter of credit documents were actually produced for sale. The letter of credit opened was accommodative in nature and the letter of credit documents like invoices, delivery challans and lorry receipts and valuable securities were all false and forged documents. Thus there was no real sale transaction. Consequently, the Tribunal held that the entire best judgment was not correct. Therefore, as there was no sales, the Tribunal set aside the order as regards the transactions between the assessee and Asian Films (P) Ltd., and confirmed the findings of the Appellate Assistant Commissioner. Apart from these transactions, the Tribunal found that there were transactions between the assessee and other entities which related to hire cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use of by the assessee to escape the provisions of sales tax law to contend that those invoices do not reflect any sale transactions ? Heard the counsel on both sides. It is a matter of record that the transactions between the assessee and one Asian Films (P) Ltd., were found to be bogus transactions and using the forged documents, certain benefits were sought to be obtained through the Indian Bank, which resulted in the Central Bureau of Investigation charge-sheeting the bank officials. These facts are not, in any manner, disputed by the Revenue. Based on the charge sheet thus filed, on the findings of the Central Bureau of Investigation, the Tribunal came to the conclusion that the Appellate Assistant Commissioner was correct in allow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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