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TMI Blog2019 (2) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... "the Tribunal" for brevity), in S.T.A.Nos.217 and 230 of 2014, dated 16.02.2015, relating to the assessment years 2007-08 and 2008-09. 2.The petitioner/assessee filed appeals before the Tribunal challenging the orders passed by the Appellate Deputy Commissioner (CT)-III, Chennai, dated 21.06.2013, in VAT AP Nos.18 and 20 of 2013. Those appeals were filed by the assessee challenging the revision of assessments dated 11.01.2013, made under the provisions of the TNVAT Act for the assessment years 2007-08 and 2008-09. 3.The petitioner is a dealer in 'cement' and for the assessment year 2007- 08, reported a total taxable turnover of Rs. 58,17,984/- and for the assessment year 2008-09, at Rs. 92,88,008/-. The place of business of the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of taxable turnover and similar stand was taken in respect of discount, which was extended for promoting the trade and the same also cannot form part of taxable turnover. The assessee produced sale invoices in support of their claim. The Assessing Officer rejected the objections filed by the assessee stating that the sale invoices are not printed bills, but are manually typed one and no uniform method has been taken by the assessee while allowing discount and freight and coolie charges. The Assessing Officer confirmed the proposal in the revision notice and completed the assessment, vide orders dated 11.01.2013. On appeals before the first appellate authority, the facts were re-examined, books of accounts were considered and the appeals fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der (Taxes) for the respondent. 7.The Tribunal reversed the orders passed by the first appellate authority on going through the assessment file, which contained sample sale bills and some more sale bills produced at the time of arguments before the Tribunal. The Tribunal found that the sample bills do not contain freight and handling charges. It noted that those expenses were shown as indirect expenses in the profit and loss account and the customers did not reimburse the same. Thus, the Tribunal concluded that if the charges were reimbursed by the customers, it would qualify a post-sale expense. But the dealer collected the entire amount along with all charges before sale of goods and therefore, it is a pre-sale expense. Accordingly, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It was further contended that the Assessing Officer, in the revision orders, states that the assessee has not submitted sale bills for verification. However, the assessee's case was that no direction was issued to the dealer to produce the sale bills and no notice, in this regard, was issued to the assessee. 12.Further, it was contended that the assessee, vide letter dated 12.07.2010, clarified that the freight charges are carriage outward expenses as per the accounting system maintained by them. These charges are not pre-sale expenses, as mentioned in the revision orders. The freight charges are borne by the dealer while delivering the cement to the customers and are reflected under 'indirect expenses' in the profit and loss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owed in the sale bills issued by them. Further, the Assessing Officer states that the assessee has not produced sale bills issued by them for verification before him. The next sentence in the revision orders speaks of verification from the bill wise details furnished in respect of discount, freight and coolie charges and it is stated that no uniform method has been followed. This is probably a part of the report submitted by the inspecting officials. 16.We have come to such a conclusion because, the Assessing Officer himself records that no sale bills were produced. Therefore, the Assessing Officer could not have verified any bill, as he alleges that sale bills were not produced. Therefore, in our considered view, the revision of assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , nor there was any notice for production of documents found in the assessment file. Therefore, the first appellate authority has gone through the assessment file, the profit and loss account, balance sheet, invoices, etc., and found the same to be true. To reverse such a factual finding rendered by the first appellate authority, the only reason assigned by the Tribunal for reversing the order is that the charges have not been reimbursed. 18.The assessee is a dealer in cement and they clearly explained as to how in their particular line of business, freight charges are accounted for under the head 'indirect expenses'. Admittedly, the appellate Tribunal, as a matter of fact, found that the sale bills and the accounting system maint ..... X X X X Extracts X X X X X X X X Extracts X X X X
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