1979 (7) TMI 218 - HC - VAT and Sales Tax

Summary

Issues:
Claim of exemption as second sales based on local purchases.
Review petition under section 36(6) of the Tamil Nadu General Sales Tax Act for discovery of new and important facts.

Analysis:
The case involved revision petitions under section 38 of the Tamil Nadu General Sales Tax Act against the Sales Tax Appellate Tribunal's order. The assessee claimed exemption as second sales, arguing that purchases were made locally. However, the Tribunal found that the persons from whom the purchases were alleged to be made were non-existent. The Tribunal also noted that declaration forms and payments by cheques did not establish the legitimacy of the purchases, as the identities of the declarants were unknown, and the cheque recipients could not be identified. Consequently, the claim for exemption was rejected by the Tribunal, leading to the filing of revision petitions before the High Court, which were subsequently dismissed on 29th October, 1975.

The assessee then filed petitions for a review of the earlier order under section 36(6) of the Act, which allows for review based on the discovery of new and important facts not previously known or producible. The Tribunal, however, determined that the case did not meet the criteria under section 36(6) as there was no new and important fact discovered that was previously unknown despite due diligence. The Tribunal's decision was challenged through revision petitions.

Regarding the fresh facts presented during the review, the Tribunal highlighted that the petitioner failed to demonstrate any instances of payment of brokerage to the individual named in the affidavit. It was emphasized that the new and important facts should have surfaced after due diligence and could not have been known or produced earlier. The Court found that there was no substantial evidence to support the claim of new facts justifying a review under section 36(6) of the Act.

The petitioner contended that the provision in section 36(6) required a cumulative condition for the discovery of new and important facts, emphasizing the necessity for due diligence in uncovering such facts. The Court, however, interpreted the provision differently, stating that the new facts must be discovered after due diligence and should not have been within the applicant's prior knowledge. The inability to produce such facts should also be a result of diligent efforts. Consequently, the Court rejected the petitioner's interpretation of the provision and upheld the Tribunal's decision to dismiss the review petitions.

In conclusion, the revision petitions were deemed unsuccessful, and costs were imposed on the petitioner. The Court upheld the dismissal of the petitions, emphasizing the importance of meeting the statutory requirements for review under section 36(6) of the Tamil Nadu General Sales Tax Act.