OVERSEAS LEATHERS Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THE assesses is on revision as against the order of the Sales Tax Appellate Tribunal relating to the assessment year 2003 -04 raising the following questions of law:

(2.) AGGRIEVED by this, the assessee went on appeal before the Appellate Assistant Commissioner, contending that they maintained route cards to identify the goods from whom they were purchased. Further, the assessee contended that they maintained separate stock accounts for import, inter -State and local purchases and the goods exported; that it was not correct on the part of the Revenue to adopt the formula for estimation. The first appellate authority allowed the assessee's appeal and accepted the assessee's contention.

(3.) EVEN though learned counsel appearing for the assessee strenuously contended that the assessee had maintained separate stock account for export sales, yet, the fact remains that the assessee had not kept the purchase material by a thorough identification mark in the manner in which they could be identified; thus in the absence of any possibility on identification, the separate stock account, per se, could not be a good ground to accept the plea of the assessee for the claim towards first sale and second sale. Thus, rightly, the Sales Tax Appellate Tribunal took note of the position and applied the decision in the case of State of Tamil Nadu v. Gomathiammal reported in : [1984] 55 STC 210 (Mad.) and estimated 50 per cent as taxable turnover.