1982 (12) TMI 168

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....peals are different. Each of them is an assessee under the Tamil Nadu General Sales Tax Act, 1959. Each of them owns a ginning factory in which raw cotton or kapas is converted into lint or ginned cotton. As if by a coincidence, each of them does not keep any accounts at all of his purchases. But the commercial taxes department was able to obtain figures of the sales of ginned cotton or lint. C....

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....as Rs. 43,758.92 to which was added the loss of kapas in the process of ginning amounting to Rs. 45,549.26. The assessees' contention in both the cases was that in the matter of estimate of the purchase value, the value of the quantity in terms of weight which had disappeared owing to driage or other reasons should not be taken note of. This contention was accepted at the appellate stage by the Ap....

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....y attractive and even innocent looking. However, what we are at in an assessment of this nature is to levy a tax on the purchase consideration of raw cotton at its last stage, that is to say, before it is converted into ginned cotton. If an assessee maintains correct accounts of purchases, then, even though after purchase the raw cotton gets reduced in weight and therefore what is termed as an inv....