9911796707
TMI Blog1999 (8) TMI 932X X X X Extracts X X X X X X X X Extracts X X X X ..... e turnover nil before the Deputy Commercial Tax Officer-II, Rajapalayam. The assessing officer after checking of accounts and records found that the purchase of hoop iron or iron pattai from Tvl. Babu Traders, Madurai, for a sum of Rs. 5,34,196 and so also the purchase of hessian cloth from one Thiru S. Krishnan, Sivakasi, for a sum of Rs. 45,500 totalling at Rs. 5,79,696 leviable with purchase tax under 7-A(1)(b) of the TNGST Act on the ground that there was no such sales to the assessee as claimed. So the assessing authority determined the total and taxable turnover at Rs. 5,79,696 at 4 per cent. 3.. Aggrieved by the said order, the assessee preferred first appeal before the Appellate Assistant Commissioner, Virudhunagar, wherein the le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... point for consideration is, whether the order of the Appellate Tribunal is sustainable and correct in law. 6.. It is no doubt that the petitioner s firm is carrying on the activity of pressing and packing. It is the specific case of the petitioner that for the purpose pressing and packing that is for job-work, the petitioner purchased hoop iron from one Thiru Babu Traders, Madurai, with Registration Certificate No. 410387 for a sum of Rs. 5,34,196 during the assessment year 1981-82. It is no doubt that the hoops or iron pattai is declared goods under entry 4(vi) of the Second Schedule for which the tax could be levied at 4 per cent at the point of first sale in the State. In such circumstances, firstly it is to be seen whether the hoops i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in respect of the purchase said to have been effected by the assessee from one Tvl. Babu Traders. It is the definite and clear finding of the lower authorities that Tvl. Babu Traders who is said to have the Registration No. 410387 is not in existence and only bogus dealer and even the place of business is not within the jurisdiction of the concerned assessing authority. Only after due verification by the departmental officials it revealed that Tvl. Babu Traders was not in existence and the bills issued were bogus. Hence, there was no sufferance of tax or valid sale of hoops in the transaction of purchase said to have been effected from Tvl. Babu Traders by the assessee. So, further reasons stated above when there is no valid sale or s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on is liable for purchase tax under section 7-A(1)(b) of the TNGST Act as a dealer in view of the decision in the State of Tamil Nadu v. M.K. Kandaswami reported in [1975] 36 STC 191 (SC). In the cited decision of the Supreme Court, it has been clearly laid down that section 7-A of the TNGST Act itself is charging section and it creates liability against a dealer on his purchase turnover of the goods if the subsequent sale or purchase had not suffered tax under section 3 or 4 of the TNGST Act, and the sale after the purchase in any of the modes under section 7-A of the TNGST Act, especially in view of the legal position (as laid down therein) that the main object of section 7-A is to plug leakage and to prevent evasion of tax, and hence whi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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