9911796707
TMI Blog2002 (12) TMI 620X X X X Extracts X X X X X X X X Extracts X X X X ..... 399/-. It is the case of the petitioner that the petitioner purchased Potassium Chloride for an amount of ₹ 69,991-25ps, ₹ 1,40 ,325/- and ₹ 6,34,900/- from three registered dealers and used it in the manufacture of Potassium Chlorate. Since the purchases were made from registered dealers under the Act, the petitioner was not liable to pay tax. Originally, the Assessing Officer granted exemption as claimed on such purchases. However, pursuant to the inspection dated 10.9.1987, the original order was revised on the above said turnover of purchases of Chloride made from (i) Industrial Chemicals (ii) Selva agency and (iii) Mani Agency on the ground that the three selling dealers have not paid tax. The petitioner carried the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elling dealers and mulcting the liability on the petitioner is not correct. 4. On the other hand, the learned Government Pleader submitted that the very point has been considered by the authorities as well as the Special Tribunal in the revision and appeal under the provisions of the Tamil Nadu General Sales Tax Act. The fact finding authorities ultimately found that the selling dealers were not in existence and the petitioner has produced only bills from non-existing dealers. It was also found on fact that the selling dealers neither carried on business nor handled the goods and the addresses given were bogus. When the petitioner claims that it is entitled to the benefit of the second sale and if the initial burden is discharged by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar in question or immediately before the purchase by the dealer, namely the second seller. However, the dealer (second seller) must establish that the first sale was a taxable sale; whether the tax had been paid by the first seller or not is not the concern of the dealer (second seller). The Revenue cannot take advantage of the fact of cancellation of the registration certificate of the first seller either on his application or otherwise, without further investing as to whether the bills issued by such seller were real or bogus bills. In the event of the Revenue establishing that the bills produced by the dealer (second seller) are bogus and were not really issued by the first seller, then the dealer cannot claim exemption on the alleged se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted that in the order of the Special Tribunal, there is a finding to the effect that the Raja Agency is also another bogus dealer and the said finding is unwarranted in the facts and circumstances of the case as it would adversely affect the petitioner in other cases pending before the authorities. The facts in issue in the present case related only to the three agencies viz., Industrial Chemicals, Selva Agency and Many Agency from whom the said purchases were said to have been made by the petitioner. In the circumstances of the case, we are of the view that the said finding is unnecessary. Hence, the finding is vacated. For the reasons stated above, we are of the view that there is absolutely no error apparent on the face of the record ..... X X X X Extracts X X X X X X X X Extracts X X X X
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