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TMI Blog2014 (4) TMI 329X X X X Extracts X X X X X X X X Extracts X X X X ..... f Investigation against Indian Bank Authority, in the charge sheet filed it was stated that there was no genuine transaction in all these cases and no goods as per LC documents were actually procured/supplied/transported. Based on the proceedings thus taken, the Tribunal held that there was no real business transaction and the entire transaction was false and forged. Thus, the asessement in that case was set aside. There is no justification to draw a different conclusion as far as the present case is concerned. Accordingly, all the Tax Case (Revisions) stand allowed and the order of the Sales Tax Appellate Tribunal is set aside. - Decided in favor of assessee. - Tax Case (Revision) Nos.119, 120 and 121 of 2009 - - - Dated:- 21-3-2014 - Chitra Venkataraman And T. S. Sivagnanam,JJ. For the Petitioner : Mrs. Pushya Sitaraman in all TC (Rs). Senior Counsel for Mrs. R. Maheswari For the Respondents : Mr. Manokar Sundaram in all TC (Rs). Additional Government Pleader (Taxes) ORDER (The Order of the Court was made by Chitra Venkataraman, J.) The assessee is on revision as against the common order dated 26.08.2008 passed by the Sales Tax Appellate Tribunal rela ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... connection, the assessee placed reliance on the letter dated 18.03.1997 from the Special Recovery Monitoring Cell, Central Office, Indian Bank and supporting affidavits from the companies involved in this transaction. The assessee pointed out that the bills were discounted with Standard Chartered Bank, NSC Bose Road, and the amounts received from the bank was accounted as loan in assessee's books of accounts. Consequently, the question of taxing the transaction did not arise. The Revenue however, contended that the assessee had purchased raw films from Sarada Enterprises, Chennai-17, Photomec Enterprises, Chennai-6, Asian Photo Film, Chennai-4 and Manoharamma Agencies, Chennai-6. 4. In the background of the documents thus recovered, the Revenue reiterated their contention before the First Appellate Authority that these suppressed sale transaction. The First Appellate Authority pointed out that neither the Enforcement Wing Officers nor the Assessing Authority established through any evidence that there was an actual movement of goods evidencing the sale. The invoices recovered were not supported by any sales bills or other records to substantiate the contention of the Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were in fact carried on or not for the purpose of the asessment order. Thus the Tribunal allowed the Revenue's appeal. Hence the present revisions before this Court by the assessee. 7. Learned Senior Counsel appearing for the assessee submitted that during the hearing of the appeal, the assessee submitted letters from the alleged sellers confirming that the invoices recovered from the place of business did not relate to sale of goods and that the invoices were issued only for bill discounting purposes. The assessee also filed letter from Bank's Special Monetary Cell confirming that the invoices recovered have no commercial value. The assessee further pointed out that the assessee never purchased anything outside the accounts or sold the same to the purchasers off the record. Considering the fact that at the time of inspection, there were no stock of goods, the contention of the assessee merited acceptance that the invoices were only accommodation invoices and nothing beyond. The assessee further pointed out to the proceedings taken against the Indian Bank and the assessee herein, before the Criminal Court and the charge sheet filed by the Deputy Superintendent of Police, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... venue to place the inspection records or for that matter search records to find out the statement recorded from the assessee, the details of the records recovered and the findings thereon. 9. Thus with the available materials, when we looked at the facts of the case, it is evident, particularly from the confirmation letters of the Indian Bank, as regards the granting of credit in favour of the suppliers and the bills discounted for the purchase of raw films by the assessee. The assessee had noted this transaction as loan in the books of accounts. Read in the context of the factual absence of any block of raw films at the time of inspection and the affidavit filed from the various suppliers as well as the Indian Bank on the proceedings taken against Indian Bank on the bogus transactions, we can only draw an inference that the contentions of the assessee merited acceptance by this Court. We may point out that the Sales Tax Appellate Tribunal had not adverted to the facts as stated above on the other hand, it had relied on the decision of this Court reported in 1993(4) MTCR 4 and held that the case is not substantiated by the assessee. 10. The Revenue does not dispute the fact t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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