TaxTMI 
TaxTMI 
2003 (4) TMI 554
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.... registered as a 100 per cent export oriented concern. The petitioner has been procuring tea from various auction centres like Calcutta, Kochi, Coonoor, etc. According to them, the tea so purchased are brought to Cochin where it is blended, packed and exported. It is also stated that though the petitioner has sales tax registration in Calcutta where the petitioner is purchasing tea in auction, the petitioner had no staff to manage their office at Calcutta and therefore the services of employees of Tata Tea Ltd., are utilised for purchase of tea in Calcutta auction for stock transfer to Cochin. According to the assessee it sent a consignment of 8565.800 kg., of tea purchased by it from J. Thomas and Company Ltd., at Calcutta auction throu....
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.... brings the same to Willingdon Island at Ernakulam where the tea is blended, packed and exported to foreign countries. The counsel also submits that the petitioner also effects sale of tea dust locally and the tax due in respect of the said transactions is also being paid to the sales tax department. The counsel further submitted that the consignment in question was purchased from Calcutta through Tata Tea Ltd., which is a sister concern of the petitioner on behalf of the petitioner in Calcutta auction and the same was transported to Kochi as per the instructions of the petitioner. The counsel also submitted that the entire tea so brought was exported after blending and packing at Willingdon Island. The counsel submits that the transaction ....
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.... inadequacies. The counsel also submitted that the observations made in paragraph 8 of the appellate order are not fully correct as they do not reflect the correct legal position. The counsel also submitted that the assessment for the year in question is pending before the Tribunal where the assessee had produced all the documents and that if the impugned order stands it may create difficulties for the petitioner. We have also heard the learned Government Pleader appearing for the respondent. He submits that both the petitioner and the Tata Tea Ltd., are well-established concerns, who know about the requirements of the sales tax enactments to be satisfied for stock transfer of goods from one place to another, that neither the p....
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.... registration numbers of the petitioner and not that of Tata Tea Ltd. It must also be noted that though the noting of stock transfer advice and weighment list are struck off on the right hand top it is seen noted "S.T.A. COCHIN-1/96 dated August 16, 1996 from sale No. 22,31,32". According to the counsel for the petitioner the full form of "S.T.A." is stock transfer advice. Though the assessing authority has relied on annexure A documents to say that it does not relate to the transaction of the assessee we note that the assessing officer and the appellate authorities have failed to take note of the circumstances mentioned above. We find that the Intelligence Officer in annexure B order has stated that the consignee has not registered any ....
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....eference to the business carried on by the assessee and as to how the assessee had dealt with the goods which are transported from Calcutta particularly in view of the contention of the petitioner that it is a 100 per cent export oriented concern. The counsel for the petitioner states that it is in possession of all the required documents to establish that the purchases made from Calcutta are accounted in Calcutta itself and that the goods under consignment received by the petitioner were exported after blending and packing and therefore there was no occasion for liability to pay tax on the said transaction. Considering all these circumstances, we are of the view that a fresh look at the issue in the context of imposition of penalty is r....