1974 (10) TMI 37 - AT - VAT and Sales Tax

Summary

Issues:
Assessment of Central Sales Tax on appellant for transactions involving diesel generating sets purchased from Sree Meenakshi Mills Ltd., Madurai and sold to buyers in other states. Dispute regarding the property ownership, inter-State sales, liability for Central Sales Tax, and turnover estimation.

Analysis:
The Dy. CTO assessed the appellant for Central Sales Tax based on purchases of diesel generating sets from Sree Meenakshi Mills Ltd., Madurai. The appellant was deemed to have taken possession of the goods and arranged their transport to buyers in other states. The Revenue contended that the appellant was liable for Central Sales Tax on these transactions, with specific focus on sales to three parties outside the state. The appellant challenged the turnover assessment, arguing that they did not dispatch the goods and were not liable for Central Sales Tax. The AAC noted that the goods remained with Sree Meenakshi Mills Ltd. and were dispatched by them to buyers as per appellant's instructions.

The appellant's counsel argued that Sree Meenakshi Mills Ltd. consigned the goods to buyers and were already assessed for Central Sales Tax on similar transactions, thus the appellant should not be taxed. The Revenue presented evidence of movement by lorry and gate passes for the transactions. The appellant's non-resident status and the nature of the transactions were emphasized, but the authorities concluded that the appellant was involved in inter-State sales, subject to Central Sales Tax. The argument that Sree Meenakshi Mills Ltd.'s assessment barred appellant's taxation was rejected.

Regarding turnover estimation, the assessing authority made an estimate due to lack of cooperation from the appellant in providing invoices. The appellant disputed the turnover figures, but the tribunal found discrepancies between the values adopted by Sree Meenakshi Mills Ltd. and the appellant. The tribunal recalculated the turnover liable for Central Sales Tax at Rs. 1,97,391, lower than the original assessment, due to lack of valid declaration forms.

In conclusion, the tribunal dismissed the appeal, upholding the assessment of Central Sales Tax on the appellant for the transactions involving diesel generating sets. The turnover liable for tax was revised based on available evidence and discrepancies in values. The penal rate was applied due to the absence of valid declaration forms.