STATE OF TAMIL NADU Vs. S VAIDAYANATHASAMI VELLORE

JUDGEMENT

(1.) The Revenue is on revision as against the order of the Tribunal relating to assessment year 1992-93.

(2.) Originally the assessment of the Assessee was finalised granting exemption on a turnover of Rs. 69,443/- on the second sale of bakery products. However, finding that the sale of bakery products had not suffered tax earlier, the assessment was sought to be revised under Section 16 of the Tamil Nadu General Sales Act to bring the turnover for assessment under Section 7A(1)(a) of the Act.

(3.) The Assessee filed an appeal as against the said order of reassessment, that the Assessee's vendors' total turnover was less than Rs. 1 lakh, which was well below the chargeable limit under Section 3(1) of the Tamil Nadu General Sales Tax Act and hence, the vendors' sales were not assessed to sales tax. The Assessee pointed out that the sellers were already assessed to tax by the respective jurisdictional authorities; hence, levy of tax under Section 7A of the Act was bad. The Appellate Authority pointed out that in the absence of any evidence to show that the vendors were already assessed, the levy of tax was justified. Aggrieved by the same, the Assessee went on appeal before the Sales Tax Appellate Tribunal.