9911796707
TMI Blog1954 (9) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... the Deputy Commercial Tax Officer, Coimbatore, assessed the plaintiff firm to sales tax on a turnover of Rs. 51,22,169-12-3 in respect of the plaintiff's main shop and a turnover of Rs. 5,27,890-0-3 in respect of the plaintiff's branch shop dealing with silver. There was an appeal by the plaintiff to the District Commercial Tax Officer and applications in revision to the Board of Revenue at Madras. There was a partial reduction in the assessable turnover. The plaintiff alleged that as per the final orders of the Board of Revenue a sum of Rs. 1,34,790-2-9 in the turnover of the branch shop and a sum of Rs. 1,64,749-2-0 in the turnover of the main shop, making a total of Rs. 2,99,539-4-9 had been wrongly assessed to a tax amounting to Rs. 2, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... firm were taken possession of by the new partnership, which included Ramalingam Chettiar and commenced to do business under the name and style of P.A. Raju Chettiar and Brothers, Silver Department, as and from 1st August, 1944. The sales tax authorities decided that the transaction amounted to a sale by the plaintiff firm, to the new partner- ship, and therefore included the said amount in the turnover of the plaintiff firm. The plaintiffs contend that this was wrong. The Govern- ment denied liability to refund any part of the amount claimed, and justified the decision of the sales tax authorities in respect of all the three items. The learned Subordinate judge of Coimbatore who tried the suit found that the second item of Rs. 20,822-9-3 w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e manufacturers of silverware and silver jewellery at Kumbakonam, and in the accounts the Kumbakonam merchants are debited the weight of such silver in tolas. And when finished articles are received from the Kumbakonam manufacturers, they are credited with the weight of the finished articles. The manufacturers are credited with the wages or making charges from time to time, that is, when the finished articles are received, and are debited when they are paid in cash. On looking into the original account books, there is no room for doubt on the matter. The columns relating to silver are headed as "credits and debits relating to silver weight". (The words "silver" and "weight" are missing in the official translation). The Kumbakonam manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of such payment. No significance need be attached to the fact that the Kumbakonam manufacturers sometimes would give articles of greater or less weight than the silver supplied by the plaintiff firm. We may also point out that the learned District Judge has misread the evidence in one particular. The learned Judge refers to the following statement in the evidence of P.W. 2: "No wages account used to be maintained separately which would show the charges made and wages paid." This statement has no bearing whatever on the issue "with which we are dealing. P.W. 2 made that statement in connection with sales of the articles made by them (the plaintiff firm). The following extract will explain the proper context of the said statement: "We had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 944 is clear. In respect of the silver business of the firm, a new partner was taken. He happened to be the manager of the plaintiff firm in charge of the silver business. Even assuming that the new partnership consisting of Ramalingam Chettiar also was an entity different from the plaintiff firm, we do not think that there has been any transfer of goods for consideration by the plaintiff to the new partnership. Nor can we speak of the transaction as a transfer made in the course of the trade or business of the plaintiff firm. There is the further fact that the deed of partnership makes it clear that the new partner, Ramalingam Chettiar, had no right to, or interest in, any of the properties belonging to the firm, and that he was only conce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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