Just a moment...

Report
FeedbackReport
×

By creating an account you can:

Logo TaxTMI
>
Feedback/Report an Error
Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
TMI Blog
Home / RSS

2007 (11) TMI 567

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....uring the assessment years 2002-03 and 2003-04 the petitioner sold goods to M/s. Rasna Private Limited (for short, "RPL"), which is an independent company registered under the Companies Act, 1956 and the transactions of the petitioner with RPL are principal-to-principal transactions. While so, the first respondent herein made provisional assessment dated August 6, 2003 for the assessment years 2002-03 and 2003-04 (April to June 2003) holding that in view of intimate connection between the petitioner and the RPL coupled with the circumstance that entire sales of the petitioner had been effected to RPL, the sale transactions fall within the mischief of "expanded sub-section (d)(iv) of section 2(1)(s) of the APGST Act". The Commercial Tax Offi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....or the same but, it is stated, the Additional Commissioner on an incorrect appreciation of the factual and legal scenario, overruled the objections and passed revisional orders dated February 9, 2004 setting aside the order of the Appellate Deputy Commissioner. Against the said orders dated February 9, 2004, the petitioner filed further appeals before the Sales Tax Appellate Tribunal in T.A. No. 223 and 224 of 2004. The Appellate Tribunal, while taking note of the legal position postulated by the Supreme Court in Union of India v. Atic Industries Ltd. [1984] 17 ELT 323, held that in order to bring within the purview of "related person", the dealer as well as the alleged related person must be shown to be having interest in the business of t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....r stated that the decision of the Supreme Court on which reliance was placed by the petitioner has no application to the facts of the case. The tax levied treating the sale turnover of the RPL as the first sales turnover of the petitioner is in accordance with the provisions of section 2(1)(s)(iv) of the Andhra Pradesh General Sales Tax Act, 1957. The first respondent passed reassessment order under section 24A of the APGST Act as per the directions of the Tribunal and in accordance with the provisions of section 2(1)(s)(iv) of the APGST Act as the sale effected by the petitioner is to be taken as having effected sales to a related person and the same does not suffer from any infirmity. Heard the learned counsel for the parties and perused....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the Revenue is required to establish the case as indicated in Atic's case [1984] 17 ELT 323 by the honourable Supreme Court. In precise, the ingredients that need to concur are as follows: The dealer sought to be brought under the amended provision must have interest in the business of the dealer alleged to be the related person, and in turn, the dealer alleged to be the related person to the appellant should have interest in the business of each other as enlightened by the honourable Supreme Court which means mutuality of interest. It is not sufficient if the dealer sought to be brought under the amended provisions of the definition 'turnover' is having the interest in the business of the dealer alleged to be the related perso....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ve interest in the business of the dealer alleged to be the related person and in turn the dealer alleged to be the related person to the petitioner-appellant should have interest in the business of each other, which means mutuality of interest. The Tribunal further held that it is not sufficient if the dealer sought to be brought under the amended provisions of the definition "turnover" is having interest in the business of the dealer alleged to be the related person and that such related person also shall have interest in the business of the dealer sought to be brought under section 2(1)(s)(iv) of the Act. The Tribunal opined that it was not ascertainable from the material papers made available at the time of hearing as to the quantum of ....