Escaped turnover and first-sale status under sales tax law turned on evidence of prior taxable sales and factual findings.

Reassessment under section 16 of the Tamil Nadu General Sales Tax Act, 1959 was examined on the question of escaped turnover and whether the assessee could be treated as the first seller in the State. On the evidence, the goods had passed through spinning mills, co-operative societies and master weavers before reaching the assessee, so earlier taxable sales in the State could not be excluded and there was insufficient material to treat the assessee as the first seller. The finding was treated as factual and free from any error of law, so the reassessment was not shown to be erroneous and the revision failed.

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Issues: Whether reassessment under section 16 of the Tamil Nadu General Sales Tax Act, 1959 was justified on the ground of escaped turnover and whether the assessee could be treated as the first seller in the State.

Analysis: The goods had moved through several stages before coming into the assessee's possession, namely from spinning mills to co-operative societies and then through master weavers. On those facts, the Tribunal found that earlier taxable sales in the State could not be ruled out and that there was insufficient material to conclude that the assessee had become the first seller in the State. The finding was based on the evidence and did not disclose any error of law warranting interference in revision.

Conclusion: Reassessment under section 16 was not shown to be erroneous, and the revision failed.

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