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1990 (4) TMI 268

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..... tion from the tax. However, on the basis of report received from Intelligence Department, the assessments for the years in question were reopened under section 16 of the Tamil Nadu General Sales Tax Act (hereinafter called "the Act") by the assessing officer. The main reason given by the assessing officer for reopening the assessment was that the seller, viz., Vasavi Co., was not a registered dealer and was not traceable and, therefore, the assessee must be deemed as first seller in wheat products and, therefore, liable to pay tax. The assessing officer not only levied the tax but also levied penalty under section 16(2) of the Act on the ground of non-disclosure of the turnover under taxable turnover. Aggrieved by the order of the assessi .....

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..... 55 of 1963 at least 50 per cent of the turnover should have been granted exemption on the ground of bona fide doubt. Before the Tribunal, a legal point was also raised regarding the jurisdiction of the assessing officer to proceed with the assessment when the detection was made by the Intelligence Wing. However, this legal point is not pressed before us. Therefore, we are not dealing with the same. 3.. It was contended before the Tribunal on behalf of the Revenue that simply because the goods have passed through the check-posts, the assessee cannot contend that he is second dealer. There is every possibility of those cases coming from outside the State or from unregistered dealer or ryots. Therefore, the assessment under section 16 of th .....

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..... shifted from first dealer to the subsequent dealers, simply because the first dealer is not available. The appellant has purchased wheat products to the extent of more than Rs. 40,00,000, and he himself cannot personally supervise the purchase of wheat from various dealers. He has to necessarily buy the goods through brokers and there is every possibility that the brokers would have cheated the appellant Out of the heavy purchases made from various dealers only the purchases from Vasavi Co., had been found to be false by the Intelligence Wing Officers and all other transactions from other dealers are found to be genuine. It is hard to believe that the appellant, such a big dealer, would have connived with the Dindigul dealer to escape sin .....

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..... he Tribunal has given a finding as follows: ".......The Revenue has not investigated the actual person who had been indulging in these clandestine transactions at Dindigul and it is not correct on their part to make the appellant completely responsible for non-payment of the tax on the disputed turnover The assessing officer has failed in his duty in verifying the correctness of the claim for exemption at least at the time of final assessment. The purchase vouchers in respect of the disputed turnover also contain check-post seals which go in favour of the appellant.............." If that be so, there is no justification for making the assessee liable for 50 per cent of the turnover in dispute. We are inclined to think that the Tribunal .....

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