Consignment sale proof accepted where statutory records and Form F were furnished; penalty deletion was justified.

Consignment sale treatment was upheld where the assessee produced the register, written contract and Form F showing agent-wise particulars of the goods, and the requirements under rule 4(3A) of the Central Sales Tax (Tamil Nadu) Rules and rule 12(5) of the Central Sales Tax (Registration and Turnover) Rules were complied with. The absence of a return-of-goods clause in the agency agreement, or non-production of an authorisation letter, did not by itself dislodge the claim. Once the prescribed particulars were furnished and accepted as genuine, the authority could not go beyond the statutory framework or recharacterise the transactions as local sales on extraneous considerations.

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Issues: Whether the turnover in question was rightly treated as consignment sale and whether the penalty levied on that basis was liable to be sustained.

Analysis: The assessee had produced the relevant register, written contract, and form F, showing the particulars of goods consigned agent-wise. The statutory requirements under rule 4(3A) of the Central Sales Tax (Tamil Nadu) Rules and rule 12(5) of the Central Sales Tax (Registration and Turnover) Rules were found to have been complied with. The absence of a clause regarding return of goods in the agency agreement, or the non-production of an authorisation letter, did not by itself dislodge the claim of consignment sale. Once the prescribed statutory particulars were furnished and accepted as genuine, the authority could not travel beyond the statutory framework or treat the transactions as local sales merely on extraneous considerations.

Conclusion: The turnover was correctly accepted as consignment sale and the deletion of the penalty was justified.

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