9911796707
TMI Blog2024 (11) TMI 1276X X X X Extracts X X X X X X X X Extracts X X X X ..... remand order dated 31.08.2000. No doubt, the assessing authority has attempted a cursory comparison of the transactions pre and post 05.10.1996 in the order for the period 1996 97, noting that the sale price was Rs. 84,975/- for 10 tonnes of white cement vide invoices upto 5.10.96 and Rs. 85,670/- for 10 tonnes vide invoice dated 26.11.1996. It cannot be understood how the above figures support the department s contention that there has been suppression of freight in the second invoice dated 26.11.1996 as that figure is, in fact, higher than the sale price pre 05.10.1996. As far as 1997 98 is concerned, there is no question of comparison, as all the transactions have taken place post 05.10.1996. In this case, there is reference to a single ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate to proceedings for the periods 1996 97, 1997 98 1999 00 ( periods in question ) passed in terms of the provisions of the Tamil Nadu General Sales Tax Act, 1959 ('TNGST Act'). 2. The petitioner is a manufacture and dealer in Cement. In respect of the periods in question, assessments had been framed overriding the submissions of the petitioner that the sale price of the Cement as per its accounts was proper and had been arrived at in a scientific manner. The methodology for determination of turnover is set out under Rule 6 of the Tamil Nadu General Sales Tax Rules, 1959 (TNGST Rules), which sets out that, in determining taxable turnover, various deductions shall be made. One of the deductions, in clause (c) of Rule 6 relates to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nded the matter by order dated 31.08.2000 for re-examination of the issue. The conclusion of the AAC at paragraph 12 is as follows:- 12. In the circumstances stated above, I m of the opinion that these material facts were not at all deeply scrutinised and gone in depth. The Assessing Authority in a hasty approach had simply arrived an approximate freight charges on best of judgment and subjected it to tax without paying attention to any of the details furnished by the appellant, nor established his stand in clear terms beyond doubt. In the circumstances, I set aside the revision made along with its consequential penal levy and remand it back to the Assessing Officer for fresh consideration with a direction to examine the issue in depth by w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cifically recorded the contention of the assessee that there should be no further addition over and above the consolidated sale consideration as such an addition would constitute nothing but an estimate. (iii) No material has been found at any stage of the proceedings to indicate suppression or non-disclosure of receipts from freight. 10. We are of the considered view that none of the orders of assessment conduct an examination of the nature envisaged by the AAC in remand order dated 31.08.2000. No doubt, the assessing authority has attempted a cursory comparison of the transactions pre and post 05.10.1996 in the order for the period 1996 97, noting that the sale price was Rs. 84,975/- for 10 tonnes of white cement vide invoices upto 5.10.9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce. The depot transfer invoice dated 17.02.1999 would have had to be compared with the sale invoice relating to that consignment, to establish whether the sale price was the same as the depot transfer price. Likewise, the depot transfer in respect of the consignment sold under invoice dated 14.02.1999 would have been of an anterior date, and the price under that invoice ought to have been compared with the price under sale invoice dated 14.02.1999. 15. In our view, there is no merit in comparing depot transfer invoice dated 17.02.1999 with sale invoice dated 14.02.1999 as they relate to different consignments that could very have been priced differently. We are hence unable to accept the arguments of the revenue based on such solitary and i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... If the assessing authority is satisfied that a dealer has, with a view to evade the payment of tax, shown in his accounts, sales or purchases of any goods, at prices which are abnormally low compared to the prevailing market price of such goods, it may, at any time within a period of five years from the expiry of the year to which the tax relates, assess or reassess the dealer to the best of its judgment on the turnover of such sales or purchases after making such enquiry as it may consider necessary and after giving the dealer a reasonable opportunity to show cause against such assessment. 19. The object of the above provision is to bring to tax turnover that, according to the authority, has been supressed by reduction of sale price in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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