GOVINDAN AND COMPANY Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THIS revision is directed against the order of remand made by the Sales Tax Appellate Tribunal. The petitioner herein reported a total and taxable turnover of Rs. 18, 17, 325.20 and Rs. 223.42 respectively for the assessment year 1971-72 to the assessing authority. Later there was a surprise inspection of the petitioners' business premises on 17th August, 1972, and it was found that the petitioners had purchased iron and steel from 12 dealers during the assessment year 1971-72, the total of the purchases amounting to Rs. 3, 91, 495.03. At the stage of assessment, the taxable turnover was estimated at Rs. 4, 30, 873.42. The assessees questioned the assessment by filing an appeal before the Appellate Assistant Commissioner.

(2.) IN that appeal, the assessees complained that they were not given reasonable opportunity of put forward their objections before the assessing authority. Accepting this objection, the Appellate Assistant Commissioner directed the assessing authority to give reasonable opportunity to the petitioners before making the final assessment. Against the said order of the appellate authority, the assessees went before the Sales Tax Appellate Tribunal.

(3.) THE learned counsel appears to be right in his submission that the petitioners who claimed exemption from tax on the ground that their sales are second sales are bound to show that there has been an anterior taxable sale and that they need not prove that tax had in fact been paid on those anterior sales. To claim the benefit of tax on the ground that their sales are second sales, the petitioners need not show that their sellers have in fact paid tax and it is enough for them to show that the earlier sales are taxable sales and that the tax is really payable by their sellers. THErefore, the direction given by the Tribunal that the petitioners are to show that the tax has been paid by their sellers on the iron and steel goods sold by them to the petitioners does not appear to be correct.