STATE OF TAMILNADU Vs. RAJA JEWELLERS SIVAKASI

JUDGEMENT

(1.) The Revenue has come forward with this revision challenging the order passed by the Tamil Nadu Sales Tax Appel late Tribunal (AB), Madurai, in MTSA No. 879/2002 dated August 5, 2003.

(2.) This tax case revision raises the following three questions of law:

(3.) The assessee is a trader in jewellery. The assessment year involved is 1998-99. The assessee reported a total and taxable turnover of Rs. 37,15,316 and Rs. 36,97,627, respectively. This includes the turnover of Rs. 32,58,113 made under Section 3E of the Tamil Nadu General Sales Tax Act, 1959, and a sum of Rs. 4,16,076 under Section 3(2) of the TNGST Act. While the assessing officer made the assessment, he included a sum of Rs. 21,88,601 towards the purchase turnover of jewellery from banks on auction in the total turnover and accordingly arrived at the total turnover of Rs. 59,35,733. Since the turnover determined by the assessing officer exceeded Rs. 50 lakhs, he rejected the claim made by the assessee under Section 3E on slab rate system as per the Ninth Schedule to the TNGST Act. Aggrieved by that order, the assessee filed an appeal before the Appellate Assistant Commissioner. The Appellate Assistant Commissioner deleted the inclusion of the purchase turnover of Rs. 21,88,601. Aggrieved, the Revenue filed an appeal before the Tribunal. The Tribunal, on being satisfied with the order passed by the Appellate Assistant Commissioner, dismissed the appeal preferred by the Revenue and confirmed the order passed by the Appellate Assistant Commissioner. Hence the present revision.