2009 (12) TMI 862

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..... 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, grounds taken by the Revenue to contend that the order of the Tribunal is erroneous cannot be accepted as valid grounds nor can be accepted as grou .....

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..... 1956 read with section 12(3)(b) of the Tamil Nadu General Sales Tax Act, 1959. On appeal, the Appellate Assistant Commissioner confirmed the assessment, but reduced the penalty from 150 per cent to 100 per cent. The assessee again filed a further appeal to the Sales Tax Appellate Tribunal, which, by reason of the order impugned in this writ petition dated February 1, 2000, allowed the appeal by setting aside the assessment and penalty in respect of the abovesaid turnover. The correctness of the said order is canvassed in this writ petition. Mr. Haja Nazirudeen, learned Special Government Pleader for the Revenue, submitted that the order of the Tribunal is erroneous on two grounds; the first one is that the requirement of rule 4(3A) o .....

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..... nefit or make the transaction something other than the one of consignment sale. In A. Dhandapani's case [1995] 96 STC 98 (Mad), the court has observed that the consignment sale can be proved by the assessee by any manner by producing all the other details from the agents and not necessarily by producing the documents, which have been stated under rule 4(3A) of the Central Sales Tax (Tamil Nadu) Rules. So, the non-production of the authorisation letter, which is stated as one of the point to non-suit the assessee for claiming the benefit, also cannot be regarded as a conclusive one. The question as to whether the sale is to be regarded as a consignment sale would depend on the merit manner in which the sale is effected. If the sale is ef .....

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