NATIONAL IRON TRADERS Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THE assessee is the appellant. This appeal is directed against the order passed by the Joint Commissioner by exercise of his power under section34 of the Tamil Nadu General Sales Tax Act, 1959. By exercising his suo motu power the Joint Commissioner revised the order passed by the appellate Assistant Commissioner. It is against that order the present appeal has been preferred by the assessee.

(2.) NATIONAL Iron Traders is a dealer in iron scrap. The assessee was reassessed for the year 1978-79 under the Tamil Nadu General Sales tax Act (the TNGST Act, 1959) by the Deputy Commercial Tax Officer on a turnover of Rs. 2, 39, 705. 92, being the purchase of iron and steel goods which had not suffered tax at prior stage. Aggrieved by the revised assessment the assessee filed an appeal before the Appellate Assistant Commissioner. The appellate Assistant Commissioner took the view that when the dealer deals with another, it was too much to expect that he should find out whether the others business was continuing or not. He therefore allowed the appeal in respect of the purchase made from Jayachandra Traders.

(3.) IN the case of Govindan & Co. v. State of Tamil nadu this Court held that to claim the benefit of tax on the ground that the sales effected by the assessees are second sales, the assessees need not show that their sellers have in fact paid tax. It is enough for them to show that the earlier sales are taxable sales and that the tax is really payable by their sellers.