TaxTMI 
TaxTMI 
2014 (2) TMI 579
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....aid assessment years under the provisions of Tamil Nadu General Sales Tax Act. On verification of the records, it was seen that the assessee purchased edible oil from a registered dealer and that the edible oil was used as raw material for manufacture of biscuits. The assessee had placed these details before the Enforcement Wing Officers on 5.3.2004. As per notification in G.O. No. 109 CT & RE dated 7.4.98, the sale of edible oil was exempted if the sales turnover of the dealer was not more than Rs.100 crores. This turnover limit was subsequently raised under G.O. No. 93/CT dated 2.6.2002 effective from 1.4.99 to Rs.300 crores. Considering the said Government Order, the Assessing Authority viewed that the purchase of edible oil which had no....
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.... made on the assessee was not sustainable. The Tribunal pointed out that considering the restricted nature of exemption notification, Section 7-A of the Act stood attracted to the facts of the case. Thus, the appeals filed by the assessee were rejected. However, as regards levy of penalty, the Tribunal set aside the same by holding that the assessee could not be held guilty of wilful non-disclosure of assessable turnover. Aggrieved by the same, the assessee is on revision before us by raising the following substantial questions of law:- (i) Whether the circumstances in which the petitioners had effected purchases from M/s.Ruchi Soya Industries Limited was a circumstance in which no tax was payable under Section 3 of the Act? (ii) Whether ....
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....suffer tax within the State at the point specified therein. Hence, where the goods does not suffer tax at the point of first sale for some reason or other, as per second proviso to Section 3(2), the said goods are brought under the net of taxation. The second proviso to Section 3(2) states that in the case of goods taxable at the point of first sale, the tax shall be payable at least once either by the first seller or by the second earliest of the successive dealers who is liable to tax under the section. This proviso does not shift the liability, but only the payability to tax. In the circumstances, this Court held that Section 7A of the Act stood attracted to cases of conditional exemption and there was no shift in the policy of taxation.....