2009 (7) TMI 1192

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....), 1017/01 (98-99) dated September 5, 2002, 1209/00(94-95) and 1208/00 (95-96) dated December 31, 2001. The brief facts of the case are as follows:   (i) The respondent is a dealer and manufacturer of cast-iron rough castings. He is an assessee on the file of the Commercial Tax Officer, Podanur Circle. The assessee paid tax at the rate of four per cent on their sale of certain specified goods under entry 4(i) of the Second Schedule to the Tamil Nadu General Sales Tax Act, 1959 claiming it to be declared goods. An inspection was carried out in the place of business of the assessee by the Department, which revealed that the commodity sold by the assessee to certain specified customers were not rough castings, but patterns assessable a....

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....ings, crank shaft, disc castings, lever castings, body and covers, cleeves, plug covers, levers, bus rods, cylinders, flywheels, bearing frames, etc., and also on verification of the records such as form XXIV, wherein also the same sort of goods as stated above has been entered. The Tribunal found that the goods had been sold on clear specifications or dimensions and measurements of minute nature with reference to the requirement of their customers and thus allowed the appeals. However, the penalty imposed under sections 16(2) as well as 12(3)(b) of the Act was set aside by the Tribunal. The correctness of the same is now canvassed before us by filing these writ petitions. Mr. Ravindran, learned counsel for the assessee, has placed much re....

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.... We have heard the argument of Mr. Ravindran, learned counsel appearing for the assessee and Mr. Tholgappian, learned Special Government Pleader representing the Revenue and perused the materials available on record. The fact is that the customers of the assessee are BHEL, manufacturer of heavy electrical goods and TVS Suzuki, manufacturer of two wheelers and other manufacturers like them placed orders on the assessee for some parts, i.e., components for the purpose of manufacturing their products in heavy electrical goods and T.V.S. Suzuki motor cycle. Instead of they themselves manufacturing those components, they give orders to persons like the assessee and get the goods manufactured from them and use them in the manufacture of their pr....

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....ug covers, levers, bus rods, cylinders, flywheels, bearing frames, etc. Form XXIV as well as the sale bills available with the assessment file also revealed that the goods had been sold with clear specifications of dimensions and measurements of a minute nature with reference to the requirement of their customers. Thus it is manifestly shown that the goods supplied are finished products capable of immediate use. That being the factual position, in the light of the judgment of the Supreme Court in the case of State of Tamil Nadu v. Pyare Lal Malhotra reported in [1976] 37 STC 319, and in the case of Vasantham Foundry v. Union of India reported in [1995] 99 STC 87, which examined the difference between the cast iron and other finished produc....