SOLVENTS AND CHEMICALS Vs. COMMERCIAL TAX OFFICER (FAC)

JUDGEMENT

(1.) This Writ Petition is filed against the assessment orders dated 15.02.2005 passed by the 1st Respondent for the assessment years 2002 -2003 and 2003 -2004, in respect of the CST and TNGST assessments.

(2.) The case of the Petitioner is as follows: -

(3.) The averments in a nutshell of the Respondents as set out in the counter affidavit are that based on the records recovered and on verification of the accounts and since the Petitioner failed to file documentary evidence to the satisfaction of the assessing officer, the Respondents came to the conclusion that the exemption claimed by the dealers as sales in transit under Section 6(2) of the CST Act could not be allowed. Since the goods were moved from Kerala to Tamil Nadu and other States based on the instructions given by the Petitioner and the goods were moved from one State to another, the transactions clearly falls under Section 3(a) of the CST Act. The dealer had not furnished the turnover under sale in transit in the monthly return in Form I prescribed under Rule 5 of the CST (Tamil Nadu) Rules, 1957 with all columns filled therein. The profit or loss or the margin received in a transaction will not alter the character of the sale. Hence, these Writ Petitions are liable to be dismissed.