1971 (8) TMI 207

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....f the respondent in having issued three independent notices for three assessment years 1962-63, 1963-64 and 1964-65 calling upon the petitioner to answer a charge of escapement of tax. The notices seem to have been issued evidently under section 16 of the Tamil Nadu General Sales Tax Act. I shall quote the relevant portions of one such notice which is enough for the purpose. After stating that the....

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....he notices are as follows: For the year 1962-63, the assessment was completed on 29th November, 1963; for the year 1963-64 on 14th November, 1964, and for the year 1964-65 on 31st December, 1965. On a perusal of the said orders of assessment which have become final, it is seen that the assessing authority accepted the position that the dealer purchased automobile batteries locally by paying 7 per ....

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.... such batteries and, therefore, they were not liable to tax at that point or stage. Practically it was conceded by the appellate authority that the batteries in question were at all material times goods which were subjected to single point levy at the appropriate stage and therefore exempt from tax when they were resold again after being charged. The respondent has issued the impugned notices and ....

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....t to be exercised with caution and on objective material available to the authority to undertake such an action under section 16. In that case I said that "the field for the exercise of such power is wide enough; but it is circumscribed by one important and singular fact, namely, that there should be some reason to reopen. Such reason should not be drawn barely from the subjective satisfaction of ....