2018 (5) TMI 530

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....manufacturers of Corrugated boxes were finally assessed on a total and taxable turnover of Rs. 1,05,87,158/- and Rs. 48,68,911/- against the reported turnover of Rs. 82,39,307/- and Rs. 21,78,007/- respectively for the assessment year 2002-2003 under the Tamilnadu General Sales Tax Act, 1959, by the Commercial Tax Officer, Kangayam Circle, in his proceedings dated 30.09.2004. During the course of check of accounts it was found that the respondent had purchased goods against Form XVII declarations and used the same in the manufacture of goods which were sold to a place outside the State. Hence, the Assessing Officer worked out the liability under Section 3(4) of the Act on the purchase value against Form XVII and by using a formula determine....

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....corresponding turnover U/S 3(4) of the Act should be arrived. The Hon'ble High Court of Madras has also held that 3(4) tax has to be levied only in the event of dispatch of goods effected to other state branch or other state agents. As far as the case on hand is concerned, the dealer-appellants have effected sales of finished products to the exporters and they have not effected any branch transfer or consignment transfer to other state. In view of the above facts and circumstances of the case, the dealer-appellants are not eligible to tax U/S 3(4) of the Act and therefore, it is ordered to delete the levy of tax made U/S 3(4) of the Act on the turnover of Rs. 23,47,850/-." 6. Aggrieved against the order of the Tribunal, State has fil....