V GUARD INDUSTRIES LTD Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) Rectification under Section 55 of the Tamil Nadu General Sales Tax Act has been refused on the ground that a subsequent judgment of the Supreme Court with regard to taxability of the sale was not required to be taken note of as a ground for rectification.

(2.) The assessee had purchased voltage stabilizers during the assessment year 1992-93 from a firm which was a charitable organization and was therefore exempt from the payment of salse tax. The point of levy of tax was the first sale. When the assessee resold the goods, it claimed that it was not liable to pay tax as it was a second sale. The assessing officer however proceeded to levy tax rejecting the plea that it was a second sale. The assessment for the year 1992-93 was made on 10.1.1994.

(3.) The Sales Tax Act was amended with effect from 17.7.1996. The amended section 3 of the Act provides for levy of sales tax on the second sale, if the first sale has not suffered tax for any reason, in cases where the point of levy is the first sale. That amendment did not cover the assessment year 1992-93.