Court denies exemption claim for turnover under Central Sales Tax Act, 1956, upholds local sales, and rectifies defective forms.

The court denied the exemption claim for a turnover of Rs. 2,21,157 under the Central Sales Tax Act, 1956, due to lack of evidence for the second inter-State sales. However, it upheld the assessee's claim for local sales of Rs. 9,680 and rectification of defective "C" forms. The court also confirmed the deletion of the turnover of Rs. 9,680 under the Tamil Nadu General Sales Tax Act, 1959, from the CST Act assessment. Ultimately, the court allowed the former action and dismissed the latter action, with no order as to costs in both cases.

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Issues:
1. Exemption claim of tax on turnover under the Central Sales Tax Act, 1956.
2. Dispute regarding local sales and defective "C" forms under the CST Act.
3. Verification of tax payment under the Tamil Nadu General Sales Tax Act, 1959.

Analysis:
1. The judgment pertains to two cases involving the same assessee for the assessment year 1979-80. In the first case, the dispute is related to the claim of exemption of tax on a turnover of Rs. 2,21,157 as subsequent inter-State sales under section 6(2)(b) of the Central Sales Tax Act, 1956. The court found that while there were materials proving the first inter-State sales, there was a lack of evidence for the second inter-State sales. As a result, the court set aside the Tribunal's order and denied the exemption claim for the turnover of Rs. 2,21,157.

2. In the second case, the dispute involved two matters: local sales of Rs. 9,680 and defective "C" forms filed for a turnover of Rs. 1,50,850.57. The court upheld the claim of the assessee regarding the Rs. 9,680 turnover as local sales not exigible to tax under the CST Act. The court also noted that the assessing officer failed to grant the concessional rate of tax at 4 percent despite the rectification of the defective "C" forms. Both the Tribunal and the first appellate authority had granted relief to the assessee on this issue, leading the court to dismiss the appeal and uphold the relief granted.

3. The court further examined the verification of tax payment under the Tamil Nadu General Sales Tax Act, 1959. It was observed that the assessing officer could have verified the tax payment from the files of the assessee under the TNGST Act. The court noted that the transactions related to the turnover of Rs. 9,680 were local sales on which tax at 6 percent had been paid under the TNGST Act. Consequently, the court upheld the deletion of the turnover of Rs. 9,680 from the CST Act assessment, finding no grounds for interference.

In conclusion, the court allowed the former action and dismissed the latter action, with no order as to costs in both cases.

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