SASTHA ENTERPRISES Vs. APPELLATE AUTHORITY

JUDGEMENT

(1.) On consent, the writ petitions are taken up for final hearing.

(2.) Both the writ petitions are filed to quash the re-assessment orders passed by the assessing authority, thereby disallowing the exemption given on transit sales, while W.P. No. 15226 of 2010 is filed against the re-assessment orders dated 16.02.2009 pertaining to assessment year 2001-2002 as confirmed by the appellate authority by order dated 24.03.2010, W.P. No. 15227 of 2010 filed against the identical re-assessment order for the assessment year 2003-2004. As both the writ petitions are filed by the same partnership against identical orders pertaining to different assessment years for identical reliefs based on identical set of facts involving identical issues, both the writ petitions are disposed of by common order.

(3.) The petitioner herein, is the registered dealer in papers and boards under the provisions of the Tamil Nadu General Sales Tax Act, 1959 and Central Sales Tax Act, 1956 (hereinafter referred to as TNGST Act and CST Act). The petitioner has for the assessment years 2001-2002 and 2003-2004 effected transit sales to the tune of Rs. 5,10,80,073/- and Rs. 1,83,21,354/- respectively. Thereafter, he filed the necessary returns along with E1 and C forms having respectively obtained from the original seller and the purchaser. The assessing officer i.e. the Assistant Commissioner (CT) has after detailed study, passed the original assessment order thereby allowing exemption to the turn over in respect of transit sales, however, the same assessing officer has reopened the assessment proceedings and issued notice to the petitioner as to why exemption already granted in respect of transit sales cannot be disallowed and tax liability and penalty be imposed. The same is followed by the re-assessment order thereby disallowing the exemption granted in respect of transit sales in the turn over in the original assessment order. The petitioner has challenged the re-assessment order relating to assessment year 2001-2002 before the first respondent / appellate authority and the first respondent appellate authority has confirmed the order of the assessing authority. Both the assessing authority and the appellate authority have in their orders, disallowed the exemption mainly on the ground, the C form obtained from the purchaser and produced by the petitioner herein, is on subsequent verification found to be not genuine as the same was not issued by the concerned assessing authority and has treated the turn over in respect of transit sales as turn over escaping assessment and brought the total amount of turn over with the tax liability and the said orders of assessing authority and appellate authority are now brought under judicial review before this Court in these two writ petitions.