9911796707
TMI Blog1981 (8) TMI 213X X X X Extracts X X X X X X X X Extracts X X X X ..... adhavaram. Under the Tamil Nadu General Sales Tax Act, 1959 (hereinafter called as the Act), raw hides and skins are taxable at the point of last purchase in the State under item 7(a) of the Second Schedule read with section 4, whereas dressed hides and skins are taxable at the point of first sale in the State under item 7(b) of the Second Schedule read with section 4. It is stated that for the period 1st April, 1978, to 30th September, 1978, returns were filed by the petitioners in form No. A-2 claiming exemption regarding the local purchases of raw skins to the extent mentioned in the returns. In spite of such a claim made, since the impugned demands have been made without authority, the writ petitions have been filed. Mr. I. Subram ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taken into account for imposition of tax. In the counter-affidavit, it is stated that the place of business was inspected and it was found out that the petitioner had effected local purchases, and therefore, it was treated as last purchase liable to pay tax at 3 per cent under section 4 read with item 7(a) of the Second Schedule to the Act. It is also stated that large stocks have been kept idle at a time when there was acute demand for raw skins, and hence, it is for the petitioners to prove whether the purchases have acquired the character of last purchase or not. There can be no dispute about the point of time as to when the liability to pay tax would arise in respect of raw skins and hides. It can be levied only when the last purch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... petitioners were holding huge stocks at a time when there is demand for the goods in the market would not be a ground for treating that last purchases had taken place and hence on provisional basis tax can be recovered. The right to demand tax would arise only when there is a completed transaction in respect of raw hides and skins and the assessee should be the last purchaser. This characteristic, if liable to be altered or changed subsequent to the provisional assessment, but well before the end of the assessment year, it would be premature to treat them as completed transactions, which come within the scope of item 7(a) of the Second Schedule, read with section 4 of the Act. In these assessments, only on presumptions, demand for tax has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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