1981 (8) TMI 213

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....e raw hides and skins from various centres, and they are processed in the petitioners' tannery at Madhavaram. Under the Tamil Nadu General Sales Tax Act, 1959 (hereinafter called as the Act), raw hides and skins are taxable at the point of last purchase in the State under item 7(a) of the Second Schedule read with section 4, whereas dressed hides and skins are taxable at the point of first sale in the State under item 7(b) of the Second Schedule read with section 4. It is stated that for the period 1st April, 1978, to 30th September, 1978, returns were filed by the petitioners in form No. A-2 claiming exemption regarding the local purchases of raw skins to the extent mentioned in the returns. In spite of such a claim made, since the i....

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.... had been otherwise converted., at the stage of provisional assessment, such stocks/purchase cannot be taken into account for imposition of tax. In the counter-affidavit, it is stated that the place of business was inspected and it was found out that the petitioner had effected local purchases, and therefore, it was treated as last purchase liable to pay tax at 3 per cent under section 4 read with item 7(a) of the Second Schedule to the Act. It is also stated that large stocks have been kept idle at a time when there was acute demand for raw skins, and hence, it is for the petitioners to prove whether the purchases have acquired the character of last purchase or not. There can be no dispute about the point of time as to when the liabi....