2022 (2) TMI 556

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....ade in this writ petition is to the order dated 26.09.2005 passed by the first respondent / Tamil Nadu Sales Tax Appellate Tribunal in T.A.No.591 of 2001, relating to the assessment year 1985-86, insofar as it affirms the levy of tax at Rs. 7,28,266/- under the Tamil Nadu General Sales Tax Act, 1959 (hereinafter referred to as "TNGST Act, 1959"). 3.The short question that arises for consideration herein is, as to whether the receipts by the petitioner from their customers, based on which the assessing officer levied tax at Rs. 7,28,266/- which was confirmed by the first appellate authority as affirmed by the Tribunal, represent the sale value of mosaic tiles or the works contract executed by the petitioner for laying and polishing the mo....

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....s of the lower authorities: Assessing Authority: ".... On perusal of the account, it is seen that no agreements were executed between the contractor and the customers in connection with the terms and conditions to be followed by the both while the contracts were executed...." ".... At this stage, it is confirmed that the dealer did not actually carried over the works contracts for the year 1985-86 and hence it is decided that he has manufactured mosaic tiles and effected the same at outright 1st sale in 1985-86." First Appellate Authority: "The only point to be decided in this case is whether the receipts of the appellants are towards the sale of material or receipt under works contract. The appe....

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....ion-cum-stock account neither with opening nor with closing stock inventories. In the absence of aforesaid details, it is clearly established that, the Assessing Officer had estimated the entire sales turnover of mosaic tiles by adding Gross Profit of 21% to the net purchase value and determined the sales turnover. The first appellate authority also has confirmed the findings of the assessing officer. In the light of the aforesaid observations, we are inclined to hold that, the authorities below have correctly estimated the entire sales turnover of mosaic tiles and so we see no grounds to interfere with his finding in that regard." 7.It is seen from the findings as extracted above that all the lower authorities have treated the receipts ....