TaxTMI 
TaxTMI 
2014 (5) TMI 456
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....sessment years 1989-90 and 1992-93 and raising the following substantial question of law:- "Whether in the facts and circumstances of the case, the Tribunal is right in affirming the allowance of second sales exemption in respect of 50% of the turnover ordered by the Appellate Assistant Commissioner (CT) when there was no further evidence of movement of goods in addition to the fact that some dealers were non-existent and registration cancelled in respect of some dealers?" 2. The facts giving rise to the present revision petitions are as follows. The respondent-Tvl.Gupta Iron & Steel Company are the dealers in iron and steel. For the assessment year 1989-90, the assessee reported Nil taxable turnover and total turnover of Rs. 57,87,44....
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....ting 50 per cent of the escaped turnover from local dealers and therefore to that extent the sale should be taken to be second sale. Accordingly, the first appellate authority adopted the ratio of 50:50 for the disputed turnover, namely, as first sale and second sale respectively and ordered exemption on the turnover in respect of the second sales on the ground that all the purchases had been made from local dealers. Simultaneously, the first appellate authority also reduced the penalty in respect of the assessment year 1989-90 and no penalty was imposed in respect of the assessment year 1992-93. 4. The said orders were questioned by the Revenue before the Tamil Nadu Sales Tax Appellate Tribunal. The Appellate Tribunal also confirmed the....
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....lid registration on the date when the purchases were made by the assessee. Nevertheless, once the said finding was rendered, the first appellate authority ought to have confirmed the order of the assessing authority instead of giving the benefit to the assessee on the presumption that the assessee can be taken to have purchased the goods representing 50 per cent of the escaped turnover from local dealers and therefore to that extent the sale should be taken to be second sale. In our opinion, this finding is not supported by any material and is only on presumption. Once the assessing authority factually found that the purchases were effected by the assessee from non-existing dealers without any valid registration on the date of purchases and....
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....the date of sale, they will be only called as bill traders. In such circumstances, the question of placing reliance on Section 10 by the assessee does not arise. When the exemption of tax on second sales is sought to be claimed by the assessee, it is for the assessee to establish that the transactions were bona fide on two aspects, namely, (i) that the purchases were made by the assessee and the goods so purchased had suffered tax already and (ii) that such purchases were made from the dealers whose registration were in force on the date of purchases. This onus cannot be shifted from the assessee by placing reliance on Section 10 of the Act. 8. The learned counsel for the respondent-assessee also placed reliance upon a judgment of this C....