STATE OF TAMIL NADU Vs. VARIETY JEWELLERY

JUDGEMENT

(1.) The State has preferred this revision against the order of the Sales Tax Appellate Tribunal (Additional Bench), Coimbatore dated 21.3.2003 passed in CTSA. No. 589 of 2001, by formulating the following questions of law:

(2.) The revision pertains to the assessment year 1997-1998. During the said year, the dealer (partnership firm) has disclosed a turnover of Rs. 11,76,630/-in respect of the old gold, stated to have been disclosed under the Voluntary Disclosure Scheme under the Income Tax Act by the wife of one of the partners. The Assessing Authority presumed that the old gold disclosed has been brought into the capital account of the partnership firm by one of the partner, on behalf of his wife (who is admittedly not a partner), and thereby estimated the value of the gold at Rs. 3,99,964/-and included it as taxable turnover.

(3.) On appeal filed by the dealer, the assessment order has been reversed by the Appellate Assistant Commissioner on the clear finding that the said jewels belonged to the women folk of the respective partners of the dealer and not old jewels as presumed by the Department for being converted by manufacture into new ones. The Tribunal while confirming the said order of the Appellate Assistant Commissioner in favour of the dealer, has relied upon the clarification stated to have been issued on 21.1.1999, which is as follows: