1998 (2) TMI 567

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....emption from tax on the value of cotton yarn in hanks and cones DHCR for Rs. 28,80,530.15 despatched to the sales depot outside the State as stock transfers. Therefore, the said turnover was not included in the turnover reported in their returns in form I. After the check of accounts the assessing officer found that a turnover to the tune of Rs. 9,65,189.88 represented stock transfer to the depots for open market sale and the rest of the turnover to the tune of Rs. 19,15,340.27 represented inter-State sales exigible to tax at 2 per cent. Consequently the assessing officer issued a pre-assessment notice dated December 31, 1990 to the assessee-dealers on those aspects of the matter, calling for their objections, if any. The assessee-dealer....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sactions were despatched only to the depot keeper in his capacity as consignment agent and therefore, it is, that the said turnover cannot at all represent inter-State sales. This sort of a definite stand the assessee-dealers took from a harmonious construction of the various clauses of the agreement. (d) The assessing officer did not at all agree with the view taken by the assessee-dealers and by construction of certain clauses of agreement alone came to the conclusion that the said turnover represented only inter-State sales and consequently, exigible to tax at the appropriate rate.   4.. This sort of a view taken by the assessing officer was subsequently upheld not only by the first appellate authority as well as by the second....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....or sales effected outside the State of Tamil Nadu. No doubt true it is, that once such a stand is taken by the assessee-dealers, it is for them to prove the same. The assessing officer appeared to have pre-judged the issue only from certain clauses of the agreement that the transactions amounted to inter-State sale, exigible to tax at the appropriate rate and no opportunity appeared to have been given to the assessee-dealers in proof of their case of consignment sales. If an opportunity had been given to the assessee-dealers wellnigh it is possible for them to produce "F" forms as produced by M/s. Abishek Textiles Industries Private Ltd., in proof of the stock transfer effected for purpose of consignment sales. It is also equally possibl....