STATE OF TAMIL NADU Vs. BHARAT MOTORS

JUDGEMENT

(1.) THE assessee is Bharat Motors. As against the reported taxable turnover of Rs. 5, 92, 940.72 during the assessment year 1979-80, the Commercial Tax Officer determined the taxable turnover at Rs. 14, 17, 796. THE assessee disputed a turnover of Rs. 8, 24, 855.12 at 4 per cent being the sales of rubberised coir products. On appeal, the Appellate Assistant Commissioner remitted back this issue to the file of the assessing officer with a direction to find out whether the assessee has sold any coir or rubberised coir. As against this order, the assessee went in appeal to the Tribunal. Before the Tribunal, the products were produced. On verification, the Tribunal came to the conclusion that the turnover relates to sale of coir and not rubberised coir. This view was also taken by the Tribunal by following the earlier orders of the Tribunal on this aspect. Accordingly, the assessee was granted exemption as per the notification issued under section17 of the Tamil Nadu General Sales Tax Act, 1959.

(2.) AGGRIEVED department has come in revision before this Court. The learned Additional Government Pleader (Taxes) submitted that the disputed turnover relates to sale of rubberised coir products and not coir products. It was further pointed out that 5 per cent rubber was used along with coir products for the purpose of producing the products marketed by the assessee. Therefore, since what was sold by the assessee was rubberised coir products, the sale turnover is liable to be taxed. On the other hand, learned counsel appearing for the assessee, while supporting the order passed by the Tribunal, submitted that on physical verification, the Tribunal came to the conclusion that what was sold by the assessees was a coir product and rubber was used as latex. It was, therefore, pleaded that the assessee is entitled to exemption as per the notification issued under section17 of the Tamil Nadu General Sales Tax Act, 1959.

(3.) POINT : The products were produced before the Tribunal. The Tribunal satisfied on verification that it is essentially a coir product and latex which forms only a small portion is added to give the necessary shape. According to the Tribunal, rubber was not blended with the coir so as to call the product as rubberised coir product. Inasmuch as the Tribunal, which is the fact finding authority, on physical verification of the product, came to the conclusion that the disputed turnover relates to the sale value of coir products, it cannot be said that the Tribunal was not correct in granting exemption under the notification issued under section17 of the Tamil Nadu General Sales Tax Act, 1959. Accordingly, we are not inclined to interfere with the order passed by the Tribunal on this aspect.