S R ASAITHAMBI Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THE assessee is the revision petitioner. THE assessment years involved in these tax case revisions are 1975-76 and 1976-77. THE assessee is a dealer in granite stones carrying on business at No. 12, Third Street, Gopalapuram, Madras and is having head office at Dharmapuri. For these two assessment years 1975-76 and 1976-77 assessments have been originally completed by the assessing officer, Dharmapuri. While doing so, the assessing officer had granted exemption on handling charges, dressing, polishing and transport charges for granite stones sold by them allegedly to exporters. Transport charges incurred prior to delivery by the assessee and collected subsequently from the exporters have also been exempted in the assessment orders of the assessing officer passed on January 18, 1979. On verification of the connected records, the Deputy Commissioner came to the conclusion that the assessing officer has committed mistakes in allowing pre-sale charges. Hence the Deputy Commissioner, while exercising the suo motu powers under section32 of the Tamil Nadu General Sales Tax Act brought to tax in the assessment year 1975-76 the charges for transporting, handling and dressing amounting to Rs. 7, 97, 422.80. Similarly, for the assessment year 1976-77 the Deputy Commissioner brought to tax the charges for transporting, handling and dressing amounting to Rs. 6, 93, 303.36.

(2.) THE Deputy Commissioner (Commercial Taxes) found the following charges have been incurred by the assessee prior to the delivery of granite stones to the exporters and the same has been exempted from the turnover wrongly by the assessing officer :

(3.) BEFORE the Tribunal exemption was claimed with regard to penultimate sales made to exporters as per the provisions of section5(3) of the Central Sales Tax Act. The Tribunal held that for the assessment year 1975-76 the sales made by the assessee to the exporters do not qualify for exemption under section5(1) of the Central Sales Tax Act, since the exemption under section5(3) of the Central Sales Tax Act was introduced only from April 1, 1976. In so far as the assessment year 1976-77 is concerned, the Tribunal held that the sales turnover is not eligible for exemption under section5(3) of the Central Sales Tax Act.