9911796707
TMI Blog1997 (12) TMI 632X X X X Extracts X X X X X X X X Extracts X X X X ..... company is located at Kumarapalayam. It is having its factory at Katterikuppam. It is having a branch at Palghat in Kerala State. 3.. During the assessment year 1988-89, it appears, the ultimate buyers at Kerala State placed specific orders at Palghat branch for delivery of cement to them. The orders so placed at the branch at Palghat, it appears, had been transmitted to the Head Office at Kumarapalayam. The Head Office, in turn, it is said, directed the factory to effect despatches in conformity with the orders placed by the identifiable ultimate buyers at Palghat. The factory, in turn, effected despatches either to those ultimate buyers directly or by sending the consignment to Palghat branch and then effected delivery to those ultimate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of the tax due, as had been imposed upon the assessee-company by the assessing officer. 7.. The Tamil Nadu Sales Tax Appellate Tribunal (Additional Bench), Coimbatore-18 (for short "Tribunal"), on further appeal, found that all the transactions, excepting the despatches effected in favour of the three identifiable ultimate buyers in Kerala, namely, (i) Memory Traders, Veradiyam, (ii) P.M. Abdul Rahman, Ponani and (iii) O.K. Mustafa, Chempecheri found to be inter-State sales exigible to tax at appropriate rate, as found by the authorities below, namely, the assessing officer and AAC. He, however, found that the despatches effected to those three traders, as stated above, represent only "stock transfer to its branch at Palghat" and, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case, is sustainable in law?" 10.. The point: It appears, during the course of arguments, before the Tribunal, a memo had been filed by learned counsel for the assessee-company detailing the despatches effected of all the goods, not directly earmarked to the ultimate customers at Kerala State and the memo so filed is traceable to page 21 of the typed set filed in T.C. (R) No. 541 of 1994. From a perusal of the memo so filed, it is seen that it contains details relatable to six ultimate buyers, namely, (i) T. Abdul Majeed, Idakkara, Malapuram district; (ii) Ladikkalkunchi Mohideen, Kottakkal; (iii) I.S.M. Industries, Olavacode; (iv) Metre Trading Co.; (v) M.M.T. Traders, Arangothrikara and (vi) E.S.M. Trading, Olavacode, for whom, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... im in favour of the assesseecompany in the revision and the same is getting revealed not only in the grounds; but also from the memo of valuation given therein. 13.. There is no pale of controversy that the identifiable ultimate buyers, hailing from Kerala State, placed specified orders at the branch of the assessee-company at Palghat. It is also equally not in dispute that the branch office at Palghat informed the head office at Kumarapalayam, about the specific requirements of the ultimate customers at Kerala. It is only on the information so furnished by the branch office, the head office either effected despatches directly to the ultimate buyers or to its branch office and thereafter, effected delivery to those ultimate buyers. Whet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... matter, the order of the Tribunal holding that the despatches effected to nine ultimate identifiable buyers outside the State are only "stock transfer for open market sale" and, therefore, not exigible to tax, on the facts and in the circumstances of the case, is not sustainable in law. Therefore, we set aside the same. 15.. We may now advert to the order of the Tribunal relatable to the reduction of penalty to fifty per cent of tax due. Section 12(5)(iii) of TNGSTA empowers the assessing authority to levy a penalty in a sum not less than fifty per cent and not more than one hundred and fifty per cent of the difference in tax payable on the turnover disclosed in the return and that determined by the assessing authority, in case the return ..... X X X X Extracts X X X X X X X X Extracts X X X X
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