Accommodation sales exclusion upheld where statutory conditions were proved and the Tribunal's factual finding was supported by the record.

Accommodation sales may be excluded from taxable turnover only when the dealer procures goods for a specific customer, sells them immediately, records the transaction contemporaneously as an accommodation sale with disclosure of the source dealer, and makes no profit. On the facts accepted by the Tribunal, those conditions were satisfied: the goods were obtained from the Bombay dealer for the customer, cleared on arrival, and the accounts substantially reflected the transactions as accommodation sales. The contrary inference from the C Form certificates was insufficient to displace the factual finding, which was supported by the record. The disputed turnover was therefore rightly excluded, and the revision petition failed.

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Issues: Whether the disputed turnover could be excluded as an accommodation sale under Section 2(i), Explanation I(iv) of the Madras General Sales Tax Act, 1939 and Rule 5(1)(c) of the Madras General Sales Tax (Turnover and Assessment) Rules.

Analysis: The exemption for accommodation sales applied only if the dealer obtained goods from another dealer specially for a particular customer, sold them immediately, entered the transaction contemporaneously in the accounts as an accommodation sale with disclosure of the source dealer, and made no profit. On the facts accepted by the Tribunal, the goods were obtained from the Bombay dealer for the customer, cleared on arrival, and no profit was made. The accounts substantially recorded the transactions as accommodation sales and disclosed the source dealer, and the contrary inference from the C Form certificates was not sufficient to displace the factual finding. The issue turned on appreciation of evidence and the Tribunal's finding was supported by the record.

Conclusion: The turnover was rightly treated as accommodation sales and excluded from the assessees' taxable turnover.

Final Conclusion: The revision petition failed, and the Tribunal's factual finding in favour of exclusion of the disputed turnover was left undisturbed.

Ratio Decidendi: A turnover can be excluded as an accommodation sale only on strict proof of the statutory and rule-based conditions, and a supported factual finding that those conditions are satisfied will not be interfered with in revision.

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