TaxTMI 
TaxTMI 
2016 (7) TMI 1124
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....ucts Ltd., Panayakkottai, is a dealer in rubberised coir products . Their business turnovers were subjected to tax under the Tamil Nadu General Sales Tax Act. For the year 1995-96, they have reported a total and taxable turnover of Rs. 1,59,52,497/- and Rs. 1,59,52,497/-. During the check of accounts, the Assessing Officer has noticed the following defects, viz., (a) The dealers have failed to report the taxable turnover of Rs. 49,089/- relating to the last purchase of Latex and to pay tax during the month of April' 1995; (b) There is difference in between the turnover reported and as per accounts; (c) The dealers have mingled the sales turnover under the Tamil Nadu General Sales Tax Act and Central Sales Tax Act, 1956, while rend....
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....044/- relating to sale of rubberised coir products shall be assessed at 5% only under Item 24/Part C of First Schedule to the Tamil Nadu General Sales Tax, 1959. Consequent on the relief granted, there is excess payment, as per the assessment order and the question of levy of penalty does not arise. Hence, the penalty levied under Section 12(3)(b) is hereby set aside as not warranted." 4. Being aggrieved by the same, the State preferred an appeal in S.T.A.No.1061 of 2000, before the Tamil Nadu Sales Tax Appellate Tribunal, contending inter alia that, "the order of the first appellate authority is not at all correct; State contends that the respondent manufactured coir products, like mattresses, pillows, seat cusions, etc., using....
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.... coir. No distinction between the products that were made by covering the block of rubberised coir with some other materials, in which, rubber is the predominant. It also used in that product. The learned Advocate has filed the raw materials required for the manufacture of rubberised coir mattress. On the other hand, the learned State Representative has contended that the dealer manufactured coir mattresses pillows, using raw material, such as, latex and other chemicals. They manufactured rubberised coir bare blocks. The end products is not entirely cash based but they are only rubber products assessable at a high rate. 8. The Appellate Assistant Commissioner has given a finding that the Assessing Officer has viewed that rubberised....
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....of 2000, dated 18.07.2002, is sought to be revised, on the following questions of law, (i) The Tribunal erred in dismissing the State Appeal filed since during the Assessment year 1995-96, the dealers had manufactured pillows, mattresses using rubber, chemicals, coir and form and hence, the end product is not exclusively made of rubberised coir, but a form product and hence, the assessment made is quite in order. (ii) The Tribunal failed to note that the product of the dealers were rubberised coir product, eventhough the dealer had purchased and used polyurethane foam. Therefore, the view of the Tribunal is not acceptable. (iii) The Tribunal failed to note that for manufacture of rubberised coir product as l....
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....e raised the abovesaid grounds and sought for reversal. Going through the orders of both the Appellate Assistant Commissioner (CT), it is seen that after perusal of the rubberised coir products, like mattresses, pillows, seat cusions, etc., and at the time of hearing of the appeal, the appellate authority has found that the above goods is made, using coir fibre and latex gum, and pasted with P.U. Foam. However, on the basis of the finding of the appellate authority that foam has been purchased from registered dealers against Form.XVII and on the above, she contended that foam has also been used in the manufacture of pillows and cusion. 8. The appellate authority has observed that, Before latexgum is used in the process of bin....