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TMI Blog2014 (5) TMI 533X X X X Extracts X X X X X X X X Extracts X X X X ..... they are not in the business of making new ornaments from the old gold ornaments for sale - The jewels which were recovered during inspection were sample jewellery given by other dealers for the purpose of manufacture of similar jewellery items - No steps were taken by the Revenue to elucidate further information on the materials produced - Therefore, there exist no case for this Court to interfere with the order of the Tribunal - Revisions are dismissed - Decided against Revenue. - TC (R). Nos.550 and 572 of 2006 - - - Dated:- 15-9-2011 - Chitra Venkataraman And M. Jaichandren,JJ. For the Petitioner : Mr. R. Sivaraman, Special Government Pleader For the Respondent : Mr. N. Inbarajan ORDER (Order of the Court was made by Chitra Venkataraman,J) The Revenue is on revisions as against the common order passed by the Tribunal in the assessee's appeal as well as in the appeal filed by the Revenue. T.C.(R). 550 of 2006 is admitted on the following substantial question of law:- Whether the Sales Tax Appellate Tribunal is correct in deleting the turnover in a sum of ₹ 1,21,17,900/- on the basis of statement given subsequent to the assessment?. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nded that in the absence of any purchase of gold and other items for manufacturing gold articles and selling the same, as such, the assessment as though the assessee was a dealer in gold jewellery did not arise. The Appellate Assistant Commissioner referred to the deposition made at the time of search on 5.11.96 from the authorised person that the assessee was not manufacturing jewellery for selling the same and held that the assessee never admitted that they purchased materials for the purpose of manufacturing gold jewellery for sale. 7. As regards notings in the slips as well as stock variation, the assessee took the plea that the slips represented the job work entrusted by the dealers with the assessee. It was contended by the assessee that the gold was entrusted by the dealers for the purpose of manufacturing new gold ornaments and all that the assessee received therein was only coolie for the job work done and there was no evidence for effecting sale of gold jewellery. 8. With reference to stock variation, the assessee pointed out that an extent of 598.160 grams represented sample jewellery given by other dealers for the purpose of manufacture of jewellery items for them ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... going by these details, the first Appellate Authority, accepted the case of the assessee as far as 20 slips were concerned. 11. As regards the variation alleged on stock aspect, the first Appellate Authority agreed with the assessee's contention based on the materials produced that they represented sample jewellery given by the dealers for manufacture of jewellery on their account. With reference to book marked 'A', it is seen from the order of the first Appellate Authority that the assessee had maintained detailed job work accounts in respect of each dealer who placed orders and each main worker to whom job work was entrusted. It however pointed out to the admission of the assessee that he could not maintain details accounts for each type of jewel entrusted for embedding and polishing to the sub workers. The written pages in the book marked 'A' contained details of description of jewels with their gross weight, net weight and weight of stones. The various numbers, description, quantity of each type or class of jewel were also mentioned therein which could be compared with the following accounts maintained by the assessee:- (i) Order forms received from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only carrying on job work, the Tribunal accepted the case of the assessee, thereby set aside the order of remand made by the Appellate Assistant Commissioner. As far as this aspect is concerned, except for contention that the seized materials had to be proved by the assessee, there are no materials pointed out by the Revenue to hold that the entries in the materials established any sale or purchase having been effected by the assessee, resulting in suppression. 15. On the materials produced before the Tribunal, with the entries in book marked 'A', the delivery bills and coolie invoices and other records maintained, it was pointed out that they were only job work undertaken on behalf of other dealers. Thus, when existence of ingredients of sale was proved, the Tribunal came to the conclusion that there was no case for remand. Thus accepting the case of the assessee, the Tribunal allowed the assessee's appeal. Even though learned Special Government Pleader (Taxes) appearing for the Revenue pointed out that the Tribunal ought not to have interfered with the order of remand in the case, he does not deny as a matter of fact both in the preceding year and subsequent year, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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