2009 (6) TMI 951

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....ng the order of the Tribunal dated April 7, 1995 passed in Tribunal Appeal No. 378 of 1993. The short facts are that the respondent herein purchased a chassis which suffered tax at that point of sale. The respondent, thereafter, erected a body over it and after using the complete unit, sold the new product, namely, the lorry to a third party, for which, the assessing authority, by its order dated....

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....iple stated in Tamil Nadu Mosaic Manufacturers Association v. State of Tamil Nadu [1995] 97 STC 503 (Mad) to appreciate the stand of the petitioner herein. The Division Bench, as proposition of law, has laid down the ratio to the following effect (at page 514): ". . . The settled position of law is that whenever a commercial commodity which has suffered sales tax is transformed into another ....

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.... which has suffered sales tax. . ." The decision referred to in South India Automotive Corporation Private Ltd. v. State of Tamil Nadu [1990] 76 STC 115 (Mad) is identical to the instant case. In the said case, the dealers in sale of three wheelers built a body over a chassis which had already suffered tax and when after the body was built as a three wheeler van, it was sold to a customer, t....