STATE OF TAMIL NADU Vs. MADRAS TANNING COMPANY

JUDGEMENT

(1.) THE assessee in this sales tax revision is a dealer in hides and skins. He purchases raw hides and skins in the State of Tamil Nadu. After tanning them the assessee sells them as dressed hides and skins. Sales of dressed hides and skins are effected by the assessee both inside the State and also in the course of inter-State trade. For 1973-74, the assessee effected sales of dressed hides and skins in the course of inter-State trade in the sum Rs. 2, 24, 720. 55. THE hides and skins in question were originally purchased in this State in their raw state. THE assessee tanned them before selling them as dressed hides and skins in the course of inter-State trade. THEre is no doubt that this sales turnover of Rs. 2, 24, 720. 55 in dressed hides and skins is assessable under the Central Sales Tax Act, 1956. In point of fact, however, no assessment has yet been made on the assessee on this turnover under the Central Sales Tax Act for the relevant year 1973-74. Consequently, no Central sales tax had been paid by the assessee on that turnover.

(2.) IN this situation, the assessee's assessment under the tamil Nadu General Sales Tax Act, 1959, for the year 1973-74 was taken up and completed by the assessing authority. IN that assessment, the assessing authority brought to tax purchase turnover of Rs. 88, 107 which, according to the assessing authority, represented the value of raw hides and skins, which were duly tanned and sold as dressed hides and skins in the course of inter-State trade and commerce for Rs. 2, 24, 720. 55.