1976 (8) TMI 69 - AT - Income Tax

Summary

Issues:
1. Disputed sales tax amounts for multiple assessment years.
2. Exemption claims for motor vehicle purchases.
3. Exemption claims for sewing machines sales.
4. Tax levy on sales of M.S. Rounds.
5. Enhancement petitions for local sales made out of locally purchased scrap.

Analysis:

1. The appellant, running a Steel Rolling Mill and a distributor for various products, disputed sales tax amounts for multiple assessment years. The appellant reported total and taxable sales for each year. The appeals were filed under s. 36(1) of the Tamil Nadu Sales-tax Act, 1959. The appellant disputed various amounts, while the State Representative filed Enhancement Petitions. The appeals were disposed of by a common order for convenience.

2. The first issue involved sales of two motor cars for the assessment year 1970-71. The authorities rejected the claim for exemption on the grounds of insufficient evidence regarding single point tax payment. The appellant's claims for exemption as second sales were remanded to the assessing authority for further review. A similar issue arose for the sale of another motor vehicle for the assessment year 1971-72.

3. The second issue pertained to the claim for exemption in respect of Sewing Machines for the assessment years 1970-71 and 1971-72. The appellant claimed these as second sales, but failed to provide sufficient evidence to support the claim. The appeals on this point were dismissed due to lack of evidence.

4. The third issue involved the levy of tax on sales of M.S. Rounds for multiple assessment years. The appellant argued that these sales were second sales of declared goods. However, the Supreme Court's decision in the appellant's own case clarified that each commercial commodity becomes a separate object of taxation in a series of sales. The appeals on this account failed due to the commercial distinction between the raw materials and the manufactured goods.

5. The final issue concerned enhancement petitions for local sales made out of locally purchased scrap. The learned State Representative sought inclusion of specific amounts in the taxable turnover. The Tribunal dismissed the Enhancement Petitions, citing limited jurisdiction and the need for the issue to have been raised before the AAC. The appellant's claims for exemption were remanded to the assessing authority, while other claims and appeals for subsequent years were dismissed.