STATE OF TAMIL NADU Vs. SUGUNA AGENCIES

JUDGEMENT

(1.) GOVERNMENT of the State has moved this Court in revision on a determination by the Appellate Tribunal under the Tamil Nadu General Sales tax Act, 1959, that a commodity called grinders once taxed when the assessee/respondent purchased without electrically operating motors, does not become a new commodity for sale when it is sold again with the electric motor joined to it as a new item of sale by the assessee/respondent.

(2.) WHEN it was determined that the assessee was liable to pay tax on a total and taxable turnover at Rs. 23, 50, 956. 84 and Rs. 3, 53, 861. 60 as against the reported total and taxable turnover of Rs. 24, 48, 676. 84 and Rs. 2, 985. 02, respectively by the assessing authority for the assessment year 1977-78, the assessee objected to the imposition of any tax on the sale of wet grinders attached with electric motors and also raised some other objections. The issue, however, as to the tax liability upon the sale of grinders under item 41-B of the First Schedule to the Act came up before the tribunal. The Tribunal agreed with the contention of the assessee that even though the wet grinder was sold with electric motor attached to it by the assessee, since it had already been taxed at the very first sale to him in the state, he was not liable to pay any tax.