AL MURUGAN CHETTIAR Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THE appellants in these two appeals are different. Each of them is an assessee under the Tamil Nadu General Sales Tax Act, 1959. Each of them owns a ginning factory in which raw cotton or kapas is converted into lint or ginned cotton. As if by a coincidence, each of them does not keep any accounts at all of his purchases. But the commercial taxes department was able to obtain figures of the sales of ginned cotton or lint. Cotton, in any form, is not assessable at the point of sale, which may be one reason why these people have not kept their accounts of purchases. For want of figures of purchases, the assessing authority was hard put to it to estimate the purchase value of raw cotton by applying a formula and arriving at their purchase value from the data furnished by the sales turnover of ginned cotton. In arriving at the purchase turnover from the data available in regard to the sales turnover, the purchase turnover was arrived at in the following fashion, to

(2.) IN the other case, the estimated purchase value was Rs. 43.758.92 to which was added the loss of kapas in the process of ginning amounting to Rs. 45, 549.26.

(3.) IN these circumstances, we must uphold the decision of the Board as based on a correct understanding of the scheme of purchase tax in regard to cotton and also the formula used in estimating the purchase value in cases where there are no correct data or materials provided by the assessees for arriving at the purchase value. The appeals are dismissed with costs (one set). Counsel's fee Rs. 250. SAPNA