TMI Blog2011 (4) TMI 1241X X X X Extracts X X X X X X X X Extracts X X X X ..... Held that:- Going by the findings of the Tribunal that the lorry business continued even after the sale of the lorries, we do not find any justification to accept the plea of the assessee that the claim of the assessee falls under Explanation to section 2(r) of the Tamil Nadu General Sales Tax Act. On the alternative plea taken by the assessee, going by the relevant entry in Part D, entry 36 of the Schedule during the relevant time and on the admitted fact that the assessee had built the body on the chassis purchased and that the body had not suffered tax at any time before, we do not find that the assessee can be granted second sales exemption. In the circumstances, the revision stands dismissed - Tax Case (Revision) No. 916 of 2006 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assistant Commissioner, who once again confirmed the order of the assessing authority on the premise that on the chassis purchased by the assessee, they have constructed the body. Since the sale of the lorry had not suffered tax earlier, the entire turnover was liable to be assessed. The assessee took a plea that the chassis had already suffered tax, they being purchased from the registered dealer. The appellate authority, however, rejected the same following the decision of the High Court reported in [1990] 76 STC 115 (Mad) (South India Automotive Corporation Private Ltd. v. State of Tamil Nadu). The appellate authority also upheld the levy of penalty under section 12((3)(b) of the Tamil Nadu General Sales Tax Act. Aggrieved by the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case and series of decision, the Tribunal came to the conclusion that the assessee had not effected sale of part of the business to come under the protection of section 2(r) of the Tamil Nadu General Sales Tax Act. The Tribunal found, as a matter of fact, that the assessee was carrying on transport business even after the sale of lorries and only part of the assets of the business were disposed of and not the business as such. Consequently, the assessee did not fall under Explanation to section 2(r) of the Tamil Nadu General Sales Tax Act. The learned counsel appearing for the assessee pointed out that even as per the balance sheet, the sale of the lorries had been clearly stated therein. In the circumstances, the Tribunal committed ser ..... X X X X Extracts X X X X X X X X Extracts X X X X
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