2009 (12) TMI 862

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..... t of the assessment year 1992-93. The facts leading to filing of the writ petition are as follows: The assessee-M/s. Sujani Textiles is engaged in the manufacture of cotton yarn and is an assessee under Mettupalayam Road Assessment Circle, Coimbatore 18. The account of the assessee under the Central Sales Tax Act was checked and it was found that the claim of exemption of turnover for Rs. 4,41,68,207 as consignment sale to other States was inadmissible. The assessing officer, therefore, issued a pre-assessment notice dated September 30, 1994 and after considering the objections filed by the assessee, passed a final order on March 31, 1995 disallowing the consignment sale to the tune of Rs. 4,41,68,207 and levying tax at two per cent by tr .....

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..... etails as provided under rule 4(3A) of the Central Sales Tax (Tamil Nadu) Rules has also been complied with and form F as required under rule 12(5) of the Central Sales Tax (Registration and Turnover) Rules has also been filed. If the statutory requirements are complied with, the authority cannot stretch their jurisdiction beyond it and make enquiry, which is extraneous to the statutory provisions. Usual reference can be made to the decision rendered in A. Dhandapani v. State of Tamil Nadu reported in [1995] 96 STC 98 (Mad). In this case, all the details have been furnished. The documents so produced have not been doubted by any of the authorities below. The documents also covered transactions of the year claimed as consignment sale. The no .....

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..... question as to whether the sale effected is a consignment sale or local sale. For the purpose of determining the character of the sale, the ability of the consignor to obtain credit from its bankers on the strength of the bills can have no impact. The documents produced before the appellate authority were examined and accepted as genuine and cover all the transactions for the year claimed as consignment sale. They cannot cease to be consignment sales merely because the authorisation letter has not been produced or merely because the agreement does not contain the clause with regard to sales return. Therefore, we are of the view that the two grounds taken by the Revenue to contend that the order of the Tribunal is erroneous cannot be accepte .....

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