RAJESWARI AND COMPANY Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) The revision Petitioner is carrying on business in the purchase and sale of copra as well as he manufactures coconut oil and oil-cake. The Petitioner filed returns for the assessment year 1984-85 under the Tamil Nadu General Sales Tax Act, 1959, and disclosed a total and taxable turnover of Rs. 2,66,164. During verification of the records by the enforcement officers, the partner of the firm gave a statement that he did not effect any inter-State purchases and hence he did not account for the purchase in the accounts. Hence, the Petitioner was requested to produce the connected sale bills copies received from the check-post for verification. On perusal of the said records, it was found that the Petitioner has accounted for the other inter-State purchases of copra except two items in respect of the bill Nos. 3/36 and 6/24 dated April 14, 1984 and January 10, 1985. Hence, a penalty under Section 16(2) was imposed for the willful failure to disclose the taxable turnover in the returns and accounts for the year 1984-85. Aggrieved by the said order, the Petitioner preferred an appeal before the first appellate authority, viz., the Appellate Assistant Commissioner, who rejected the same on July 12, 1995 and the further, appeal preferred by the Petitioner to the Tribunal was also rejected on September 21, 1998. Hence, the Petitioner filed the tax case revision before the Tamil Nadu Taxation Special Tribunal in the year 2002 and thereafter it was transferred to the file of this Court in the year 2006.

(2.) The learned Counsel appearing, for the Petitioner would submit that it is the case of the Department itself right from the assessing officer that the copra's were purchased by the Petitioner from other States and not within the State. If that be so, according to entry 6(viii) of the Second Schedule to the TNGST Act, coconut (copra) is liable for tax only at the first purchase in the State and not otherwise. In view of the facts of the case, there is no tax liability on the Petitioner and therefore the proceedings impugned in the petition must be set aside.

(3.) We have heard the learned Special Government Pleader (Taxes) appearing for the Respondent.