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TMI Blog1980 (11) TMI 149X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of those two years. The reopening of the assessments was made only on the basis of certain entries said to be contained in the books of account of M/s. Peirce Leslie India Ltd. Though the assessee had requested for an opportunity to cross-examine the representative of M/s. Peirce Leslie India Ltd., the assessing authority refused to comply with the said request and completed the reassessment proceedings. On appeals filed by the assessee before the concerned Appellate Assistant Commissioner of Sales Tax, the reassessment orders were set aside and the matters were remanded to the assessing authority for fresh disposal for affording an opportunity to the assessee to cross-examine the representative of M/s. Peirce Leslie India Ltd. After the remand, one Shri R.V. Narasimhan, Assistant Manager of M/s. Peirce Leslie India Ltd., was examined before the assessing authority and his evidence regarding the nature of the transactions between M/s. Peirce Leslie India Ltd. and the assessee-firm and a statement of accounts extracted from the books of the company were also brought on record. 3.. The ground on which the original assessments were sought to be reopened was that the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax and Sales Tax v. Alwaye Agencies [1974] 34 STC 467 since, in the opinion of the assessing authority, the facts were exactly similar. The assessing authority accordingly held that there had been a transfer of property in. the goods from M/s. Peirce Leslie India Ltd. to the assessee and the subsequent supply of the goods in question by the assessee to the co-operative societies and estate owners were by way of sale. The reassessment proceedings for the years 1972-73 and 1973-74 were completed by the addition of Rs. 6,94,558.95 and Rs. 13,03,760 respectively for 1972-73 and 1973-74 as escaped turnover and subjecting the same to tax. 5.. The assessments for the years 1974-75 and 1975-76 were subsequently taken up and they were finalised by including in the taxable turnover of the assessee Rs. 34,83,850 and Rs. 42,13,270 respectively representing the turnover relating to the disputed transactions relating to copper sulphate, oleocop and agricultural spraying oil supplied to the co-operative societies, etc. The appeals filed by the assessee before the Appellate Assistant Commissioner were dismissed by the said authority. The assessee carried the matters in second appeal bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee in the books of M/s. Peirce Leslie India Ltd. were explained by the witness as having been made only with a view to watch the collection of the sale proceeds from the buyers, such a procedure being insisted on account of the fact that the relationship of the assessee with M/s. Peirce Leslie India Ltd. was that of a del credere agent who had undertaken the responsibility of carrying out the due payment of the prices by the buyers. We do not find anything in the statement of accounts furnished by M/s. Peirce Leslie India Ltd. which helps the department to establish that the transactions in question were sales effected by the assessee to the co-operative societies, etc. The evidence of Shri Narasimhan has not been disbelieved by the assessing authority and in the face of the said evidence it is difficult to understand how the assessing authority and the Tribunal thought it fit to rely on the statement of accounts of M/s. Peirce Leslie India Ltd. as furnishing a basis for reaching the conclusion that the transactions in question were sales effected by the assessee. The invoices of M/s. Inkemex India Ltd. and M/s. Peirce Leslie India Ltd. relied on by the assessing authority as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... finding entered by the Tribunal that the assessee had dominion over the goods and that the transactions in question were sales effected by the assessee is based on inferences drawn by it from six invoices issued by M/s. Inkemex India Ltd. in May, 1975, a pro forma invoice dated 9th June, 1975, issued by the assessee and five bills issued by M/s. Peirce Leslie India Ltd. in the name of Kappad Service Co-operative Society Ltd. Having gone through these documents we are unable to see how they furnish any legal basis for the inference drawn by the Tribunal that the assessee had dominion over the goods before delivery and had effected the sales of the commodities covered by the invoices. The nature of the transactions covered by the invoices and bills referred to above has been explained by the Assistant Manager of Peirce Leslie India Ltd., who was examined before the assessing authority and one would have expected the Tribunal to advert to his evidence while dealing with the question as to what inferences could legally be drawn from the invoices, etc. Unfortunately, the Tribunal has totally ignored this important piece of evidence. The only other document relied on by the Tribunal in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngly stand allowed and the orders passed by the Tribunal, the Appellate Assistant Commissioner and the assessing authority are all set aside. T. R. C. Nos. 190 and 192 of 1979, which relate to the assessment years 1974-75 and 1975-76, are also allowed, the Tribunal's order is set aside and the appeals T. A. Nos. 737 and 738 of 1978 are remanded to the Tribunal for fresh disposal in accordance with law in the light of the observations contained in this judgment. The parties will bear their respective costs in all these tax revision cases, November 26, 1980 At the time when, the judgment in these tax revision cases was pronounced on 14th November, 1980, the learned Government Pleader appearing on behalf of the State orally prayed under article 134-A for the grant of certificates under article 133(1) of the Constitution to enable the State Government to carry these matters in appeal before the Supreme Court. The consideration of the said request was deferred to this day. After hearing both sides we have come to the conclusion that these are not fit cases for the grant of the certificates since they do not involve a substantial question of law of general importance on which a prono ..... X X X X Extracts X X X X X X X X Extracts X X X X
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