9911796707
TMI Blog2019 (4) TMI 1634X X X X Extracts X X X X X X X X Extracts X X X X ..... ity under the provisions of the Tamil Nadu General Sales Tax Act, 1959. 2. The assessment order was passed by the Assessing Authority on 04.07.1994 and the Appellate Assistant Commissioner (CT) allowed the appeal of the Assessee by order dated 02.12.1994. Thereafter, the Joint Commissioner (SMR) issued a show cause notice under Section 34 of the said Act on 16.04.1996, to which, the Assessee filed his objections on 22.07.1996. However, rejecting those objections, the Joint Commissioner (SMR) passed the impugned order on 09.09.2002 holding that the Assessing Authority should pass fresh assessment order levying tax on the turnover of sales of moulds, which, according to the Assessee were not taxable at all because such moulds were specially designed for some specified companies to manufacture 'Pet Bottles' (Plastic Bottles) on their behalf and the Appellate Assistant Commissioner was justified in holding the sale of such moulds to be not the part of the taxable turnover in the hands of the Assessee, which was however revised and reversed by the learned Joint Commissioner (SMR) in the impugned order. 3. The Appellate Assistant Commissioner in his order dated 02.12.1994, inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstitutions had to entrust the printing to those in whom they had the highest confidence so that the printer would not divulge the questions to be printed and will preserve the confidential nature of the transaction. The value paid for such a printing job included to a large extent the price of not only the technical and provisional work but also confidence and faith to and there was no question of sale of blocks or passing of property as they were destroyed in due course (39 STC 226). In the instant case also. The mould manufactured by the appellant, due to preserve the interest of the appellant's business among the other competitor-company, had not been sold to customers and actually they were retained as the appellant's own asset till its mutilation. When the said High Court decision was taken before the Supreme Court. It was affirmed in 73 STC 1, stating that the contract in that case was one, having regard to the nature of the job to be done and the confidence reposed for the work to be done for remuneration and no liability to sales tax arose in respect thereof. It was held that the primary difference between contract for work or service and a contract for sale is tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bottles for the consumption of 1 kg pet chips and by considering the total consumption of 7363 kgs of pet chips being the average production worked out to 24 numbers of bottles only, the sales suppression of 5 numbers of bottles per 1 kg of chips was inferred and thereby the total suppression was estimated to 36815 numbers of bottles valued to Rs. 4,78,595.00. In this connection, it was pointed out by the appellant that the statement was furnished to the statistical official during his survey on 04.11.92 that there was production of 45242 nos. of bottles during April 92 and May 92 and there was also production of 'Lipton' bottles to 39762 nos. during those months wrongly. There was actually no production from the raw materials of 'Lipton' during the said months and the entire production shown in the month of April 92 and May 92 were related to the own production only and if it were considered there would be total production of 2,14,562 nos. during the period of survey as against the figure adopted at 1,74,800 nos. as per the statement furnished then. It was also pointed out by the authorised representative of the appellant that even in the said statement furnished ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts of the case and modified the appeal and so requested to drop the Suo Motu Revision proposal. On perusal of the records, it is noticed that the dispute related to assessment made with reference to suppressions arrived on the basis of the case study and inspections and the suppressions adopted in respect of sales of mould. The Assessing Officer adopted the suppression of Rs. 4,78,595/- with reference to result of case study. Here, the appellate Assistant Commissioner (CT) considered the various facts and observed that there was no production during the month of April and May and there was also incorrect furnishing of the books produced for the LIPTON. Thus on factual finding there was no suppression with reference to the case study and accordingly he deleted the turnover. His observation is found acceptable. The Assessing Officer assessed the dealers on the stock variations noticed to the tune of Rs. 38,900/- and Rs. 1,76,460/-. The Assessing Officer has pointed out the stock Difference was admitted at the time of case study in the statement given by the dealer. Discrepancy in stock was properly established in the order of the Assessing Officer. The Appellate Assistant C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed, there are no reasons to estimate probable suppression outside these transactions. Hence, further addition is not warranted in this case. In these circumstances, the Assessing Officer will levy tax on the turnover specified above and levy suitable penalty according to law. In the end, the Suo Motu Revision is modified." 6. We have heard the learned counsel on either side and perused the materials on record. 7. In the circumstances of the case, we are satisfied that the Joint Commissioner has erred in invoking the revisional power to bring to tax the aforesaid items of receipts, either receipts for the job work or the receipts for designing the moulds for manufacturing of pet bottles for the specified customers, as taxable turnover in the hands of the Assessee. Even though the Assessee was engaged in the business of manufacture and sale of pet bottles (plastic bottles), but it is only the bottles manufactured from its own raw materials and sold in general market could be taxed in the hands of the Assessee as the taxable turnover. The receipts for the job work of converting the raw materials from plastic into pet bottles in a specified size or design for other customers is n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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