2014 (2) TMI 341

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....visional power. 2. We have heard Mr.R.Vijayakumar, learned counsel appearing for the assessee and Mr.Manoharan Sundaram, learned Additional Government Pleader appearing for the respondent. 3. The assessee is a manufacturer of beedis, an inspection was conducted in the assessee's premises on 28.03.1993 by the Enforcement Wing Officers. In the course of inspection, the Officer pointed out that there were stock discrepancies, consequently, the Assessing Officer made best judgment assessment pursuant to the inspection report for the 1992-93 under the provisions of Tamil Nadu General Sales Tax Act, 1959. 4. Aggrieved by the assessment order, the assessee preferred appeal before the Appellate Assistant Commissioner, contending that they ....

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....d that the Department also properly apprised of the real happenings behind the voucher and contra-purchase voucher indeed covered an intra-State purchases made from a registered dealer in the State and it cannot be fixed to tax under Section 7A of the Act. Thus, by recording the above finding, the Appellate Assistant Commissioner held that liability fixed on the assessee either at the purchase point or at the sale point and the assessment on the disputed turnover of Rs.15,50,656/- is therefore, found to have been made without any legal sanction. Thus, the Appellate Assistant Commissioner ordered deletion of the above turnover from assessment. For the above reasons, the penalty imposed under Section 12(3) of the Tamil Nadu General Sales Tax ....

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....ently prepared by the Stores Clerk in the name of one of their suppliers namely Duliyan Kularam Kosai instead of preparing it in the name of Naresh & bros., Madras; further goods involved were received in the assessee's premises on 23.03.1991 in Lorry No.TN-28-2467 and the corresponding purchase voucher was pending to be prepared till 07.09.1992 and the dispute to be settled between the parties, who, in turn, without the assessee's knowledge, advised some other third party to make supplies to the assessee. To establish their bonafide, the asessee, in receipt of the above consignment properly recorded in its Pass Register for receipt of goods at its Books at Page No.20 on 23.03.1991 itself. In fact the assessee was never in the business of s....