TaxTMI 
TaxTMI 
1999 (1) TMI 515
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.... dismissing the appeals filed by the petitioners. 2.. The appellant is a public limited company engaged in the business of blending, packing and selling tea. Its head office is in Calcutta with branches in several other States. The Bangalore branch is in-charge of the packing division of the company. It is having a factory in Bangalore where tea which is purchased mostly from Assam is blended and packed and the packed tea of different brands is sold either in the State or in the course of inter-State trade. The petitioners filed returns of turnover under the Karnataka Sales Tax as well as Central Sales Tax Acts disclosing the total turnover of Rs. 33,44,85,457.16 for the year ending March 31, 1989. They disclosed a taxable turnover under....
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....er appealed before the first appellate authority who upheld the assessment which was questioned before the Appellate Tribunal which also confirmed the order passed by the assessing authority. 3.. As mentioned earlier the petitioner is engaged in blending, packing and selling tea mostly imported from Assam from their own estate. While importing their goods, the goods were always covered by insurance against damages and if the goods are damaged beyond salvation, petitioner is entitled to recover the entire value of the claims. Sometimes the damaged goods are received by the petitioner and while claiming damages for the said damaged goods, the petitioner instead of returning the damaged tea, revision petitioner helps the insurance company t....
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....mpany for recovery of tax. The department could not have further levied penalty under the Central Sales Tax or Karnataka Sales Tax Acts. It is the contention of the revision petitioner that the turnover of the salvaged tea is discovered from the petitioner's books of accounts and the petitioner cannot be penalised since there is no wilful non-disclosure. 5.. On behalf of the Revenue it was contended that the petitioner in any case admittedly took delivery of the damaged tea powder and after salvaging the same, sold the same to various customers which amounts to a sale attracting levy of tax in the hands of the petitioner irrespective of the fact whether the petitioner has acted on behalf of the insurance company or on their own behalf. T....
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....damaged or in good condition and thereafter salvaged the damaged tea, sold the same and the entire sale proceeds towards the sale of salvaged tea have been realised by the petitioner's unit and all the transactions have been completed within the State. Simply because some of the purchasers are situated outside the State the transactions which took place in Bangalore or within the State cannot be said to have been completed outside the State. The bifurcation made by the revision petitioner showing sales in Bangalore and in Secundrabad is without any basis. First of all when the assessing officer proposes the assess the petitioner, the petitioner did not put forth such a plea before the assessing authority. As held by the Tribunal, the pet....
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.... by the revision petitioner and the burden lies on the revision petitioner to prove that tax has been paid by the insurance company for the transaction of sale. No such evidence has been led by the revision petitioner. The petitioner who admittedly receives the damaged goods and takes up the work of salvaging and selling the same is either the principal or the agent. Even as regards imposing of fine also does not call for any interference. The Tribunal on scrutiny of the notes obtained by the assessing authority found that the transactions were not reflected in the books of accounts of the petitioner. The books showed the income received from the insurance company on account of salvaged tea that was accounted for. The petitione....