9911796707
TMI Blog1995 (7) TMI 406X X X X Extracts X X X X X X X X Extracts X X X X ..... her the turnover to the extent of Rs. 7,42,118 in relation to the assessment year 1981-82 and the turnover to the extent of Rs. 4,26,032 in relation to the assessment year 1982-83 are only second sales and hence not taxable in view of section 3(2) of the Tamil Nadu General Sales Tax Act, 1959 (hereinafter referred to as "the Act") or they are only first sales exigible to tax. While the Appellate Assistant Commissioner has held that they are only first sales by the assessee, the Tribunal below has held that they are only second sales and hence exempted them from tax pursuant to section 3(2) of the Act. So holding the Tribunal has also held that the assessee is not liable to additional sales tax under the Tamil Nadu Additional Sales Tax Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hases" from agriculturists or any other persons, and on that footing alone has come to the conclusion that the Revenue has not proved that the abovesaid goods in the hands of the assessee have not suffered tax earlier. Learned Additional Government Pleader (Taxes) submits that the Tribunal has thrown the burden wrongly on the Revenue since according to her, the burden of proof is only on the assessee to prove that the alleged earlier purchases by the assessee were taxable sales in order to claim exemption for the impugned sales as subsequent second sales. 6.. After going through the Tribunal's order, as well as the orders of the other authorities below, we find that there is great force in the above referred argument of learned Addition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tement before the inspection authority cannot be a guiding factor in deciding the question, he should have stated so by sending a reply to the pre-assessment notices. Further, only if the assessee gives particulars about his previous vendors, the department can verify whether those vendors and the alleged prior sales were genuine. But, when the assessee chooses not to give any particulars about the alleged purchases by him, the burden is not cast on the department to prove that there were earlier sales in favour of the assessee. Further, it should also be noted that the above referred two turnovers were not at all accounted in the books of accounts and they were only discovered through the incriminating records recovered at the time of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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