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TMI Blog1977 (12) TMI 135X X X X Extracts X X X X X X X X Extracts X X X X ..... m the taxable turnover and held that the assessees are eligible for deduction towards Central sales tax only from 16th November, 1957, as per the formula given in rule 11(2) of the Central Sales Tax Rules, 1957, and he determined, by an order dated 25th August, 1960, the net taxable turnover liable to Central sales tax at one per cent as Rs. 12,76,440.27 and the balance of the tax payable as Rs. 122.33 after deducting the tax of Rs. 12,642.07, which had already been paid. This order was confirmed by the Appellate Assistant Commissioner in the assessees' appeal by an order dated 5th December, 1960. In the Board of Revenue's suo motu revision made under section 34 of the Tamil Nadu General Sales Tax Act it was found that the turnover assessed represented only the sale value of cotton despatched by the assessees from this State to the mills in other States, and that, apart from such transactions, the assessees had sold cotton to mills inside the State as also to mills outside the State while the goods were moving from one State to another. The Board of Revenue considered the objections and fixed the total turnover taxable at one per cent under the Central Sales Tax Act by an order dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act on sales of goods effected by him in the course of inter-State trade or commerce, whether such sales fall within clause (a) or clause (b) of section 3, shall be levied by the Government of India and the tax so levied shall be collected by that Government in accordance with the provisions of sub-section (2), in the State from which the movement of the goods commenced." Sub-section (2) of the amended section 9 lays down that: "Subject to the other provisions of this Act and the rules made thereunder, the authorities for the time being empowered to assess, reassess, collect and enforce payment of any tax under the general sales tax law of the appropriate State shall, on behalf of the Government of India, assess, reassess, collect and enforce payment of tax, including any penalty, payable by a dealer under this Act as if the tax or penalty payable by such a dealer under this Act is a tax or penalty payable under the general sales tax law of the State." The amended section 9 says that that section shall be deemed always to have been substituted in the original Act. In view of these amendments of the Central Sales Tax Act, the Supreme Court allowed C.A. No. 565 of 1967, prefer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es were only brokers who brought the up-country sellers and the ultimate buyers together. The goods were found to have been sent by road, rail and sea. The assessees did not produce the railway receipts, bills of lading and any of the contracts. The Tribunal found that there were two sets of contracts in the impugned sales held by the Appellate Assistant Commissioner to be inter-State sales, that there was specific movement of the goods with reference to the contracts of sale with the up-country sellers falling under section 3(a) of the Central Sales Tax Act and the up-country sellers looked only to the assessees for payment of the invoice value of the goods, and that there were transfers of documents of title to the goods from the assessees to the ultimate buyers falling under clause (b) of section 3 of the Central Sales Tax Act in respect of the goods despatched by the up-country sellers for and on behalf of the assessees, leading to the inference that the assessees had retained the right of disposal of the goods before their transfer to the ultimate buyers and that the purchase price and the sale price differed in several cases leading to the conclusion that there were two sets ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reassessment of escaped turnover. Even the other decision of the Supreme Court in Deputy Commissioner of Agricultural Income-tax and Sales Tax, Quilon v. Dhanalakshmi Vilas Cashew Co.[1969] 24 S.T.C. 491 (S.C.)., relied upon for the assessees, relates to escaped turnover. There it has been observed that the power under rule 33, which confers power to assess escaped turnover, is normally to be exercised in matters de hors the record of assessment proceedings. We are not concerned in this case with any escaped turnover, for, the assessing officer, while examining the assessees' accounts, found, in the present case, that there were inter-State sales in cotton to the extent of Rs. 12,77,734.80 from 1st July, 1957, to 31st March, 1958, as stated above, and the further proceedings culminating with the remand of the matter to the assessing officer by the Supreme Court in the judgment dated 7th January, 1971, in C.A. No. 565 of 1967 continued. The learned counsel for the revenue invited our attention to the decision of the Supreme Court in Jaipuria Brothers Ltd. v. State of Uttar Pradesh[1965] 16 S.T.C. 494 (S.C.)., which does not, however, help the revenue having regard to the fact that i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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