TaxTMI 
TaxTMI 
1998 (7) TMI 679
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....ision-petitioner (hereinafter referred to as "the assessee") is entitled to exemption in view of the Notification (S.R.O. No. 319 of 1984) on the purchases of coir yarn, admittedly made during the assessment year 1983-84. 2.. The facts as gleaned from the materials placed on record, are that the assessee purchased coir yarn during the year 1983-84 and his books of account reflected closing stock ....
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.... the purchases of coir yarn made during 1984-85, were exempted. Learned counsel for the assessee urged before us that when, by virtue of the fiction created by the explanation to section 2(xxvi), closing stock of 1983-84 was deemed to be a part of the assessee's total turnover for 1984-85, a further fiction should be raised that such turnover represented the purchases of coir yarn of the year 1984....
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.... of last purchase, will be deemed to be the part of the assessee's total turnover for the subsequent year. The fiction is limited only to the extent that the closing stock of the earlier year shall be deemed to be the part of the assessee's total turnover of the subsequent year. There is no presumption under the explanation to section 2(xxvi) that the closing stock of the earlier year, which is de....
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....ach of the subsequent years, until such goods are either sold by him in the State or such purchase acquires the character of last purchase in the State in the hands of such dealer and in case such purchase acquires the character of last purchase in the State in the hands of such dealer, the turnover in respect of such purchase shall be liable to tax in the year in which the purchase acquires the c....