1972 (6) TMI 60

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...., J.-The only question that arises for consideration in this tax case is as to whether the interference of the Tribunal with the order of the lower authorities disallowing a sum of Rs. 23,557.47 as second sales of oil is proper. The assessee in this case is a manufacturer of gingerly oil. He not only manufactured oil but also purchased the same locally. He sold oil locally as well as inter-State, ....

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....tured oiland worked out the turnover of second sales of oil. Aggrieved against the adoption of such a formula by the assessing authority, the assessee filed an appeal and the appellate authority also affirmed the assessment order. The Tribunal, on appeal, however, purporting to follow the decision in Rathinaswamy Chettiar v. The State of Madras[1962] 13 S.T.C. 419., where this court, in a simil....

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....ut of the taxable category rather than otherwise", especially after the observations of the Supreme Court in State of Madras v. Narayana Nadar & Co.[1968] 21 S.T.C. 25 (S.C.).  Rathinaswamy Chettiar v. The State of Madras(1), though dealt with a similar situation, was rendered under the provisions of Madras Act 9 of 1939. But we are concerned here with the provisions of Madras Act 1 of 1959 w....

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....s purchased locally and from outside, which were later tanned and sold, this court pointed out in Anwaraulla AM. Ghouse & Co. v. State of Tamil Nadu[1971] 28 S.T.C. 610 at 614., that: "Although the assessee has maintained accounts as required by rule 26, still, it is for the assessee to establish the particular raw hides which have gone into the manufacture of tanned hides and skins. But, if he....