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TMI Blog1979 (7) TMI 216X X X X Extracts X X X X X X X X Extracts X X X X ..... of separate purchase figures for inter-State sales of cotton lint, the Joint Commercial Tax Officer held 'that the sales turnover would be treated as purchase turnover and assessed at 2 per cent. The total turnover taxed by him came to Rs. 1,05,90,401 consisting of Rs. 21,20,126 being the turnover in cotton seeds taxable at 3 per cent and Rs. 84,70,275 being the turnover taxed at 2 per cent. The assessee appealed to the Appellate Assistant Commissioner. The question raised before him was that the sum of Rs. 84,70,275 was arrived at in an arbitrary and illegal manner and that the joint Commercial Tax Officer was wrong in taking the last purchase value of lint at the same figure as the sale value. The Appellate Assistant Commissioner conside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the rate of 3 per cent on the sales, there is double taxation because to the extent of the purchase price embedded in the sum of Rs. 85,25,638, the sales of cotton seeds to the extent of Rs. 21,20,126 has also been taxed. The Tribunal did not accept this submission and, therefore, the result was that the turnover was directed to be enhanced by Rs. 2,24,767 from Rs. 83,00,871 to Rs. 85,25,638. The assessee has questioned this order of the Tribunal in this revision before us. The first point to be considered in this revision is whether the Tribunal in dealing with the appeal of the assessee was entitled to add to the turnover, as determined by the assessing authority, any further figure so as to enhance the assessment beyond the figure as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the limit of the power of the Tribunal is only up to the amount of turnover as assessed by the assessing authority. During the course of the argument there was some discussion as to whether the Tribunal could have travelled beyond the point in appeal before it and enhanced the assessment with reference to some other item. It is unnecessary to consider this aspect as in the present case the question relates only to a particular item of turnover which alone was the subject-matter of enhancement. The learned counsel for the assessee brought to our notice a recent decision of the Supreme Court in State of Kerala v. Vijaya Stores[1978] 42 S.T.C. 418 at 422 (S.C.). The following passage in that decision was relied on: "The normal rule t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cept the construction placed by the counsel for the appellant on sub-section (4)(a)(i) would be really rendering sub-section (2) of section 39 otiose, for if in an appeal preferred by the assessee against the Appellate Assistant Commissioner's order the Tribunal would have the power to enhance the assessment, a provision for cross-objections by the department was really unnecessary. Having regard to the entire scheme of section 39, therefore, it is clear that on a true and proper construction of subsection (4)(a)(i) of section 39 the Tribunal has no jurisdiction or power to enhance the assessment in the absence of an appeal or cross-objections by the department." This decision cannot, therefore, govern the powers of the Tribunal under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cope of the Second Schedule. In respect of the goods falling within the Second Schedule there is single point taxation in accordance with the provisions of section 4 read with the said schedule. In the case of cotton the turnover is taxable at the point of last purchase in the State. Subsequently, under Tamil Nadu Act 39 of 1973, item 6 of the Second Schedule came to be amended and now item 6(iii) deals with taxability of cotton seeds which are liable to tax at the point of first sale in this State. Prior to Act 39 of 1973 it is common ground that cotton seed was subject to multi-point tax in accordance with the provisions of section 3. The contention of the learned counsel was that in the purchase price of cotton which was evaluated at Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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