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TMI Blog2024 (12) TMI 937X X X X Extracts X X X X X X X X Extracts X X X X ..... nai in T.A.No.1253/95 dated 15.07.1998. 2. The petitioner is a dealer in groundnut kernel and gingelly seeds and registered both under the Tamil Nadu General Sales Tax Act, 1959 (hereinafter referred to as "TNGST Act") and under the Central Sales Tax Act, 1956 (hereinafter referred to as "CST Act"). The petitioner has filed a return for the assessment year 1992-93 by reporting a taxable turnover of Rs. 15,04,912/- and 2,87,912/- under the CST. 3. The petitioner had claimed second sale exemption on the purchase of gingelly seeds of 95,310 kgs. The accounts were called for and verified by the Assessing Officer and by the assessment order dated 02.06.1995, the claim of the second sale of gingelly seeds by the petitioner to the extent of 50,9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner, the said M/s.Sri Valli Traders was a registered dealer and therefore the purchase made cannot be disputed. It is his further contention that when the petitioner had produced the necessary bills, the finding that there had been no actual movement of goods has no relevance and by producing the renewal receipt of M/s.Sri Valli Traders, they have discharged their burden that the earlier sale was a second sale. 8. Per contra, Mr.TNC.Kaushik, learned Additional Government Pleader for the respondents 1 and 2 argued that the petitioner failed to submit any materials to establish the actual movement of goods and the documents filed by the petitioner were found to be not genuine which has also been confirmed by the inspection carried out by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ined at a later date to cover the purchases effected from the unregistered dealers to evade the tax due, the assessee had manipulated the records, the Assessing Officer had passed assessment order disallowing the claim of the second sale in respect of M/s.Sri Valli Traders. 13. The assessee had preferred an appeal before the Appellate Assistant Commissioner, Cuddalore and had contended that the registration certificate of M/s.Sri Valli Traders was available till 1992-93 and the purchase bills submitted by the assessee are for a prior period when the registration was valid and therefore the purchase of gingelly seeds from M/s.Sri Valli Traders is only a second sale. 14. However, the Appellate Assistant Commissioner on finding that the reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... officer rejected their claim of exemption on the aforesaid turnover (Rs.5,25,720/-) being the estimated sales turnover, corresponding purchases of which were effected from Tvl.Valli Traders, 55, Kandappa Chetty Street, Chennai-1, who were non-existing dealers. Before the learned assessing officer, the dealer has also produced xerox copies of departmental receipts and other documents towards the proof of renewal of registration for the year in question. The learned counsel for the appellant had submitted that once purchases are effected from registered dealers, subsequent cancellation of registration cannot alter the claim of exemption and inturn he pleaded relief as sought for by them. The contention putforth by the learned counsel for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer, which was sustained by the first appellate authority on appeal are well within order and thus we find no grounds to interfere with the findings of the first appellate authority in that regard. Therefore, we sustain and confirm the assessment made on the aforesaid disputed turnover." 18. As per Section 10 of the TNGST Act, the burden of proof for proving any transaction that the dealer is not liable to tax shall lie on the dealer. As such, the burden was always on the dealer to prove the point of first sale. 19. In the instant case, the assessee had not discharged the burden of proof under Section 10 of the TNGST Act by proving the first sale. Further the finding of fact has been arrived at consistently by the authorities that the bil ..... X X X X Extracts X X X X X X X X Extracts X X X X
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