2003 (10) TMI 612

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....elling pre-recorded audio cassettes. He purchased pre-recorded audio cassettes, from suppliers in Tamil Nadu, who are also registered dealers under the TNGST Act. For the supply of pre-recorded audio cassettes made to the petitioner, the suppliers also charge sales tax under the TNGST Act. Therefore, the sales at the hands of the petitioner are second sales eligible for second sale exemption. Tvl. Super Recording Co. Ltd., is a manufacturer of recorded audio cassettes and when they sell such pre-recorded cassettes to the petitioner by charging excise duty as well as sales tax, this sale transaction by the said supplier cannot be ignored so as to treat the petitioner as the first seller of pre-recorded cassettes. Though the clarification and....

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....ettes. The reason stated by the second respondent for bringing the relevant turnover to tax is that the person (customer) who has undertaken the recording work has no right to sell the recorded cassettes, because he has done the job of recording for labour on works contract basis, for which, the customers have also received labour charges and on that basis, the petitioner, who holds right over the audio cassettes, was treated as the first seller of the pre-recorded cassettes, liable to tax under section 3(2) of the Act. With reference to reliance placed on the orders of the first appellate authority for the year 1998-99, the second respondent has stated in the impugned order that the decision taken by the Appellate Assistant Commissioner w....