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TMI Blog2014 (2) TMI 579X X X X Extracts X X X X X X X X Extracts X X X X ..... rst seller or by the second earliest of the successive dealers who is liable to tax under the section. This proviso does not shift the liability, but only the payability to tax. In the circumstances, this Court held that Section 7A of the Act stood attracted to cases of conditional exemption and there was no shift in the policy of taxation - edible oil sold to the assessee had enjoyed the exemption under the Government Order by reason of the sellers' turnover being below 300 crores limit and that the goods sold to the assessee was consumed in the manufacture of biscuits thus the edible oil is no longer available for further tax treatment as per proviso to Section 3(2), rightly the assessment was brought to tax under Section 7A of the Act. G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 7A of the Tamil Nadu General Sales Tax Act. Accordingly, assessments were re-opened under Section 16(1)(a) of the Tamil Nadu General Sales Tax Act. After giving opportunity to the assessee, the assessment was thus confirmed. Aggrieved by the said assessment, the assessee went on appeal before the Deputy Commissioner (Appeals), who upheld the assessment. However, as regards the turnover of Rs.10,64,222/-, being the difference in the turnover relating to purchase of edible oil, the same was remanded back to the Assessing Officer for fresh consideration to examine as to whether the said turnover had any basis for inclusion in the purchase turnover taxable under Section 7-A(1)(a) read with Section 16(1) of the Act. As regards penalty, the Dep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y a notification under Section 17 of the Act? (iii) Whether the power under Section 17 of the Act can be utilised for shifting liability to a purchaser to pay tax under Section 7-A of the Act? (iv) Whether the Notification had exempted the transaction of sale as a result of which the purchases by the petitioners also stood exempted? 4. Learned counsel for the petitioner made substantial submission on the scope of Section 7-A, that being in the nature of anti tax evasion measure, the said provision has relevance only for those cases where there was leakage of tax. Since, the phrase 'tax payable' would include situation covered under Section 17 of the Act also, the question of levy of purchase tax did not arise. 5. We do not think that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yed the exemption under the Government Order by reason of the sellers' turnover being below Rs.300 crores limit and that the goods sold to the assessee was consumed in the manufacture of biscuits thus the edible oil is no longer available for further tax treatment as per proviso to Section 3(2), rightly the assessment was brought to tax under Section 7A of the Act. Given the object of introduction of Section 7A, to plug the leakage and to prevent evasion of tax, even though there is no 'evasion of tax' as such in the sense in which 'evasion' is understood, applying the decision reported in [1975] 36 STC 191 STATE OF TAMIL NADU v. M.K.KANDASWAMI AND ORS., we reject the submission of the assessee that the exemption granted is a circumstance w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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