TaxTMI 
TaxTMI 
2018 (2) TMI 120
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....n monthly returns for the assessment year 2006-07, under the Tamil Nadu General Sales Tax Act, 1959. Exemption claimed towards the sales made to 100% EOU, was disallowed by the Assessing Authority, on the ground that tools did not fall, within the scope of the notification, issued in GO Ms.No.528 CT & RE dated 21.11.1997. According to the petitioner, the place of business of the dealer was inspected by the Enforcement wing officers on 09.11.2006 and during the course of inspection, actual suppression was noticed and therefore, equal addition was made, for the probable omission. Thus, the Assessing Authority determined the total and taxable turnover at Rs. 2,66,24,338/- and levied penalty, under Section 12(3) (b) of the TNGST Act by hi....
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.... circumstances of the case, the Tribunal is right in law in not considering the amended Section 12(3)(b) of the Act, with effect from 01.07.2002, penalty is leviable with reference to the difference between the tax assessed and tax paid as per the returns." 6. Supporting the substantial questions of law Mr.K.Venkatesh, learned Government Advocate (Taxes) submitted that the order of the Tribunal is contrary to law, and the Tribunal has erred in deleting the penalty levied under Section 12(3)(b) of the TNGST Act. 7. Learned counsel for the petitioner further submitted that the Tribunal has failed to consider that as per the amended Section 12(3)(b) of the Act, with effect from 01.07.2002, penalty is leviable, with reference to the differenc....
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....y reason of the fact that it has got consumed therein. The natural gas used by the appellant for the manufacture of paper and paper product was not consumable but a fuel. iii) In the case of Teaktex Processing Complex Limited Vs. State of Kerala reported in 136 STC 435, the Honble High Court of Kerala has held that consumables means the item must not be in existence in end-product in any form. After processing of fabric by using the dyes, the dyes existed in the form of colour. The item dyeused in the process of bleaching textile fabrics, could not be treated as a consumable. Similarly, the Honble High Court of Madras in the case of State of Tamil Nadu Vs. Arcot Cans reported in 88 STC 285 had held that the expression consumesunmistakably....
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....ual suppression and it was confirmed by the Appellate Deputy Commissioner. There is no incriminatory records (or) any other evidences to hold that the dealer has indulged habitually in suppressing the transactions. Therefore, the judicial decisions relied on are not supporting the case of the appellant. As a result, we feel that the order of Appellate Deputy Commissioner does not require further interference and accordingly it is confirmed. vi) As far as penalty is concerned, assessment was made by rejecting the exemption claimed. The turnover is available in the books of accounts and claimed exemption. The exemption claimed was rejected by the Assessing Officer. There is no mensrea on the part of the respondent to attract penalty under s....
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.... and after April 1, 1996 must be taken to be to, permit the levy of penalty only in case where the assessment is a best judgment assessment made on an estimate and not by relying solely on the accounts furnished by the assessee in the prescribed return. On and after April 1, 1996 an explanation has been added below Section 12(3) which requires the turnover relating to the tax assessed on the basis of the accounts of the assessee, to be disregarded, while determining the turnover on which the penalty is to be levied under Section 12(3). 8. The assessments for the assessment years 1993-94 and 1994-95 which were assessments made on the basis of the accounts, and not based on any other material and were not estimates, have therefore, to be re....