STATE OF TAMIL NADU Vs. ANNAMALAIAR MILLS LTD.

JUDGEMENT

(1.) The State in this tax case revision seeks to revise the order of the Tamil Nadu Sales Tax Appellate Tribunal, Madurai, dated June 10, 2002 in a batch of Madurai Tribunal Appeals, one among which is MTA No. 54299 relating to the respondent Tvl. Annamalaiar Mills Ltd., Dindigul for the assessment year 1990-91. In all the Madurai Tribunal Appeal Nos. 539 to 543/1999 relating to the same mill for the assessment years from 1986-87 to 1991-92, the issue involved is as to whether the transaction of purchase of cotton between the respondent-mill and one Maharashtra State Co-operative Cotton Growers Marketing Federation Ltd., Bombay (hereinafter shortly referred to as Federation) is inter-State sale or local sale by reason of delivery of goods, after payment of entire sale consideration within Tamil Nadu. While the original assessing officer and the Appellate Assistant Commissioner (CT), Madurai have, for the reasons recorded in the order, negatived the contention raised on the side of the assessee regarding the nature of the transaction as inter-State sale and arrived at a conclusion that it is only a local sale and accordingly imposed levy of surcharge, additional surcharge and penalty, etc., Tamil Nadu Sales Tax Appellate Tribunal has, in the impugned order, reversed the findings of the authorities below and treated the transaction as inter-State purchase and accordingly, set aside the assessment made on the transaction and hence set aside the corresponding levy of penalty under section 16(2) for the years 1986-87, 1987-88, 1989-90 and under section 12(3) of the Act for the assessment year 1991-92 as levied by the assessing officer and as sustained by the Appellate Assistant Commissioner. Aggrieved against the same is the present tax case revision by the State before this court.

(2.) The learned Additional Government Pleader (Taxes) appearing for the revision petitioner has, in support of his contention that the transaction in question is only the local sale, reiterated the same points as raised before authorities below that the goods remained the property of the federation and the sale was completed in Tamil Nadu, after the payment was made and thereafter, the goods were delivered.

(3.) Whereas, the respondent/assessee, in support of their case that the transaction in question is only inter-State sale and not local sale, reiterated the following points: