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TMI Blog1983 (3) TMI 247X X X X Extracts X X X X X X X X Extracts X X X X ..... nover on the ground that the same represented the proceeds from works contract. The assessing authority, however, determined the total turnover at Rs. 1,51,270 by making certain additions to the reported turnover for certain defects and omissions noted in the accounts submitted by the assessees. Before the assessing authority the assessees claimed that the entire turnover represented proceeds from works contract and therefore it was not taxable. They also claimed that in any event the transaction of supply of finished products involved two separate and independent contracts, one to supply paper and paper boards and the other to supply labour, and that as sales of paper and paper boards being second sales, the turnover representing these sal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sible, especially when the parties had deliberately provided for two distinct and separate contracts. It is also found by the Tribunal that two separate bills, one for the cost of material and the other for labour charges, are prepared by the assessees. The Tribunal further found that separate entries were not a makebelieve apportionment of the turnover for the purpose of sales tax. In this view, the Tribunal has held that the turnover in dispute has to be separated into two, on the basis of the bills, one relating to work and service and the other relating to sale of paper and paper boards. The Tribunal has stated that since the sales of paper and paper boards by the assessees were second sales, they were exempted from tax under the Tamil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authority and he proceeded to bring the sale turnover as also the turnover relating to printing and binding charges to tax on the ground that the aggregate turnover represented sales of finished products. If really the assessing authority was of the view that the sales of paper and paper boards were not second sales, he would have in the assessment order brought the turnover representing the sales of paper and paper boards to tax on the alternative ground that the sales of paper and paper boards would be liable to tax, even if the turnover in relation to the finished products could not be brought to tax. Thus, we find that there is no material to indicate that the sales of paper and paper boards by the assessees are first sales liable to t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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