1991 (10) TMI 290

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..... ssing authority was not justified in levying tax on the purchase of "cotton waste" treating it as inferior cotton. It was pleaded that cotton waste was liable to be taxed on the first sale under item 16 of the First Schedule. The plea of the assessees found favour with the Appellate Assistant Commissioner who held that the assessees had purchased cotton waste and the same could not be treated as inferior variety of cotton, making it liable to tax at the point of last purchase at the hands of the assessees. The Appellate Assistant Commissioner, therefore, deleted the levy of tax at 3 per cent in respect of the turnover of Rs. 11,52,542.58. The Joint Commissioner, however, proposed to revise the order of the Appellate Assistant Commissioner, .....

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..... , the assessing authority has, on verification from the purchase bills, made an endorsement to the effect that the purchase bills revealed the purchases relate to "inferior variety of cotton and yellow pickings". This endorsement has been made in Tamil and translated, it implied "inferior variety of cotton and yellow pickings". The assessing authority, therefore, found that the purchase turnover of Rs. 11,52,542.58 related only to inferior variety of cotton attracting sales tax at the point of last purchase, because there is no proof that the purchases had suffered tax at an earlier stage. The Appellate Assistant Commissioner, however, without verifying the records, came to the conclusion only on the basis of the contention raised on behalf .....

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..... purchase bills produced before it declared the goods as inferior cotton and not as a cotton waste." This finding was recorded by the Joint Commissioner on the basis of the material on record and since the assessees had failed to prove that the purchases effected by them were at any point of time cotton waste, their pleas were rightly rejected by the Joint Commissioner, who set aside the order of the Appellate Assistant Commissioner. The order of the Joint Commissioner is based on material on record and the evidence available on record in the form of purchase bills of the assessees themselves. The order of the Joint Commissioner, therefore, does not suffer from any error and the proposal to bring to assessment the turnover of Rs. 11,52,5 .....

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