1990 (2) TMI 277

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....dispute in this case is a sum of Rs. 2,73,941.95 relating to assessment year 1981-82. This turnover was originally subjected to tax by the assessing officer. On appeal, the Appellate Assistant Commissioner exempted this turnover on the ground that the sale of timber by the assessee/appellant herein is second sale eligible for exemption. The Joint Commissioner, Commercial Taxes, by exercising suo m....

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.... on the turnover of Rs. 2,73,941.95 and restored the order of the assessing officer. Aggrieved by the order of the Joint Commissioner, this appeal is filed. 2.. Mr. K. Govindarajan, learned counsel appearing for the assessee, submitted that the retrospective effect given to the cancellation will not affect the right of the assessee in claiming exemption as second sale. In support of that, he re....

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.... found to be dealer engaged in the manufacture or purchase or in the business of purchase and sale of stainless steel vessels, all sales effected by it were taxable sales and the contention that merely because the seller was not a registered dealer, when it sold the goods to the assessee, its sales to the assessee were not taxable sales could not be accepted. If the assessee was able to show that ....

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.... for the default, if any, on the part of the department, in not collecting the tax on the first sale by an unregistered dealer, the purchaser cannot be made to suffer tax on his factual second sale. It can also be presumed that at the time of purchase, the first seller must have collected tax. So far as the case on hand is concerned, it is common ground that the first seller was a registered deale....