1991 (10) TMI 290

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....ed by the assessees before the Appellate Assistant Commissioner, where it was contended that the assessing authority was not justified in levying tax on the purchase of "cotton waste" treating it as inferior cotton. It was pleaded that cotton waste was liable to be taxed on the first sale under item 16 of the First Schedule. The plea of the assessees found favour with the Appellate Assistant Commissioner who held that the assessees had purchased cotton waste and the same could not be treated as inferior variety of cotton, making it liable to tax at the point of last purchase at the hands of the assessees. The Appellate Assistant Commissioner, therefore, deleted the levy of tax at 3 per cent in respect of the turnover of Rs. 11,52,542.58. Th....

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....le and find that in the statement furnished by the assessees claiming the purchases to be waste cotton, the assessing authority has, on verification from the purchase bills, made an endorsement to the effect that the purchase bills revealed the purchases relate to "inferior variety of cotton and yellow pickings". This endorsement has been made in Tamil and translated, it implied "inferior variety of cotton and yellow pickings". The assessing authority, therefore, found that the purchase turnover of Rs. 11,52,542.58 related only to inferior variety of cotton attracting sales tax at the point of last purchase, because there is no proof that the purchases had suffered tax at an earlier stage. The Appellate Assistant Commissioner, however, with....