TMI Blog2022 (2) TMI 852X X X X Extracts X X X X X X X X Extracts X X X X ..... the weight of 1900 grams from 3 persons on 28.11.1996; the receipt of such gold ornaments was entered in the regular stock book at page 47 / Vol.II on 28.11.1996; and the goods so received were sent for conversion and manufacture of new jewels along with the dealer's other purchases of old gold jewels. Further, the contention of the petitioner that the ornaments were received as deposit for show purpose, was not accepted by the assessing officer, taking note of the liberty granted to convert the gold ornaments into new one by melting process. Having regard to the admitted fact that though the petitioner said to have received 1900 grams of gold ornaments from 3 persons for deposit purpose on 28.11.1996, they had not declared the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the articles made out of it. For the assessment year 1996-97, the assessing officer, after inspection of the petitioner's business premises by the Enforcement Wing Officials and upon scrutiny of records, assessed 1900 grams of gold jewellery to the value of ₹ 7,22,000/- and levied purchase tax at 2% under section 7A of the TNGST Act, by order dated 21.11.1997. The said order was challenged before the Appellate Authority, who partly allowed the appeal and remanded the matter to the assessing officer for fresh consideration. Thereafter, the assessing officer passed the reassessment order on 09.08.2000, levying purchase tax at 2% on the value of gold jewellery of ₹ 7,22,000/-, besides additional sales tax of ₹ 1,722/- f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le to purchase tax under section 7A of the TNGST Tax. Though the appellate authority correctly modified the order of assessment, the Tribunal set aside the order of the appellate authority and confirmed the order of the assessing officer, which is arbitrary, illegal and contrary to law. Therefore, the learned counsel sought to allow this writ petition by quashing the order of the Tribunal. 4.On the other hand, the learned Special Government Pleader (Taxes) appearing for the respondents reiterated the averments made in the counter affidavit and submitted that the petitioner had entered into the receipt of gold jewels in its stock book maintained for the trade and converted them into new jewels; the stock books showed the stock of newly ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... naments produced by the petitioner, it was found by the assessing officer that the dealer had received gold ornaments to the weight of 1900 grams from 3 persons on 28.11.1996; the receipt of such gold ornaments was entered in the regular stock book at page 47 / Vol.II on 28.11.1996; and the goods so received were sent for conversion and manufacture of new jewels along with the dealer's other purchases of old gold jewels. Further, the contention of the petitioner that the ornaments were received as deposit for show purpose, was not accepted by the assessing officer, taking note of the liberty granted to convert the gold ornaments into new one by melting process. Ultimately, the assessing officer rendered the following findings: The d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ansactions, only the right to use the ornaments was transferred from three persons to the dealer and there was no direct purchase or sale involved; and that, the department had failed to prove with documentary evidence the alleged conversion of old ornaments into new one by the dealer, the Tribunal after elaborately analysing all the materials available before the same, observed that though the assessee contended that it is only a deposit by three individuals, they could have informed at least immediately after the inspection, but not certainly after two months; and therefore, the so called agreements and the theory of deposit were unbelievable. While observing so, the Tribunal came to the conclusion that the tax levied by the assessing off ..... X X X X Extracts X X X X X X X X Extracts X X X X
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