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TMI Blog2019 (3) TMI 407X X X X Extracts X X X X X X X X Extracts X X X X ..... il Nadu Sales Tax Appellate Tribunal (Additional Bench), Coimbatore (for brevity "the Tribunal"), dated 05.02.2015, in C.T.S.A.Nos.141 of 2007, 68 of 2010, 142 of 2007 and 110 of 2010, for the assessment years 2003-04 (CST), 2004-05 (CST), 2003-04 (TNGST) and 2003-04 (TNGST) respectively. 2.These tax case revisions have been admitted, on 03.08.2015, on the following substantial questions of law:- "(i) Whether in the facts and circumstances of the case and in law, the Sales Tax Appellate Tribunal is right in holding that there is an under-invoicing as provided under Section 12-A of the Tamil Nadu General Sales Tax Act, 1959 in respect of sales made to different customers. (ii) Whether in the facts and circumstances of the case and in la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer did not accept the explanation offered by the petitioner/dealer and confirmed the proposal in the show cause notice. The dealer filed appeal before the Appellate Deputy Commissioner (CT) Main, Coimbatore. The first appellate authority after considering the explanation offered by the dealer as to why differential rates were adopted, allowed the appeals filed by the dealer. Aggrieved by the same, the Revenue preferred appeals to the Tribunal, which were allowed by the impugned order, and this is how the dealer is before us by way of these tax case revisions. 6.We have elaborately heard Mr.N.Inbarajan, learned counsel for the petitioner/dealer; and Mr.Mohammed Shaffiq, learned Special Government Pleader (Taxes), assisted by Mr.V.Hari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y reference, the said provision is quoted hereinbelow:- "Section 12-A. Assessment of sales shown in accounts at low prices. - (1) If the assessing authority is satisfied that a dealer as, with a view to evade the payment of tax, shown in his accounts, sales or purchases of any goods, at prices which are abnormally low compared to the prevailing market price of such goods, it may, at any time within a period of five years from the expiry of the year to which the tax relates, assess or reassess the dealer to the best of its judgement on the turnover of such sales or purchases after making such enquiry as it may consider necessary and after giving the dealer a reasonable opportunity to show cause against such assessment." 10.A reading of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of Tamil Nadu And Others, (1997) 105 STC 337, which upheld the validity. In the said judgment, the statement and objects for the amendment have been referred to and from which, we find that the object of introducing Section 12-A with effect from 03.12.1979 with a view to provide for assessment of tax in cases where the dealer has, with a view to evade payment of tax, shown in the accounts, sales or purchases of any goods at abnormally low prices compared to the prevailing market price of such goods sold. 13.So far as the power under Section 16 of the TNGST Act is concerned, the power deals of escapement of assessment to tax or under-assessment to tax. Therefore, the powers under Section 12-A of the TNGST Act cannot overlap with the po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade an enquiry in this regard. Unfortunately, the Assessing Officer by a cryptic order, rejected the objections. The first appellate authority has carefully analysed the explanation offered by the dealer and found that the best judgment assessment on the alleged assessment was wholly unsustainable. 16.In the decision of the High Court of Kerala in the case of Deputy Commissioner of Sales Tax (Law) vs. K.E.Korah, (1997) 107 STC 226, the Court was considering the scope of Section 19-B of the Kerala General Sales Tax Act, 1963, which is in para materia with Section 12-A of the TNGST Act, and it was pointed out that under the said Section, a duty is cast on the Revenue to prove that the dealer factually collected more than the ostensible cons ..... X X X X Extracts X X X X X X X X Extracts X X X X
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