2009 (8) TMI 1118 - HC - VAT and Sales Tax

Sale as contemplated under section 3 of the Central Sales Tax Act - Held that - What has been decided by the lower appellate authorities were all disputed questions of facts relating to inter-State sale falling under section 3 of the Central Sales Tax Act. While examining the findings rendered by the Appellate Assistant Commissioner as affirmed by the Tribunal, we find that the lower appellate authorities have chosen to accept the stand of the respondent-assessee based on the relevant documents found in the assessment file. With reference to those documents when such a categoric finding came to be recorded by the Tribunal, we are not in a position to interfere with the said findings in the absence of any other valid material displayed by the Revenue which was omitted to be considered by the lower appellate authorities. In the absence of any question of law, the orders impugned cannot be revised under section 38 of the Tamil Nadu General Sales Tax Act. Revision dismissed.

Summary

Issues:
- Challenge to order of Sales Tax Appellate Tribunal regarding tax liability assessment and penalty imposition for alleged unaccounted inter-State purchases of sunflower oil.
- Burden of proof on the taxing authority to establish taxable sale under section 3 of the Central Sales Tax Act.
- Disputed questions of facts related to inter-State sales and acceptance of assessee's stand based on documentary evidence by lower appellate authorities.

Analysis:
- The Revenue challenged the Sales Tax Appellate Tribunal's order affirming the Appellate Assistant Commissioner's decision regarding tax liability assessment for the assessment year 1994-95. The assessing authority found discrepancies in the respondent's accounts related to 12 suppliers of sunflower oil, alleging unaccounted inter-State purchases. The Tribunal upheld the Appellate Assistant Commissioner's decision, emphasizing the burden of proof on the Revenue to establish the fact of sale involved. The assessing authority had imposed a penalty of 150% of the tax liability based on the discrepancies.

- The Appellate Assistant Commissioner held that the acknowledgment by consignors' representatives for taking back the goods did not constitute a sale as per section 3 of the Central Sales Tax Act. The burden of proof to establish a taxable sale was on the Revenue, and since no evidence was presented to show that the goods were sold without being brought into account, the assessment was set aside. The Tribunal concurred with this reasoning, citing relevant case law and emphasizing the taxing authority's burden to prove a taxable sale.

- The High Court, in its analysis, noted that the lower appellate authorities had considered disputed questions of facts regarding inter-State sales and accepted the respondent's stand based on documentary evidence in the assessment file. The Court found no illegality in the approach of the Appellate Assistant Commissioner or the Tribunal in appreciating the facts. As no valid material was presented by the Revenue to challenge the findings, the Court declined to interfere with the lower appellate authorities' decisions. The Court dismissed the Revenue's revision, stating no grounds for revision under the Tamil Nadu General Sales Tax Act and denying any relief to the Revenue.

This comprehensive analysis covers the issues raised in the legal judgment, detailing the challenges, burden of proof, and the Court's assessment of the lower appellate authorities' decisions.