PONNI SAGO FACTORY Vs. DEPUTY COMMERCIAL TAX OFFICER; SALEM STARCH AND SAGO MANUFACTURERS SERVICE INDUSTRIAL CO-OPERATIVE SOCIETY LIMITED AND STATE OF TAMIL NADU REP BY SECRETARY TO GOVERNMENT, DEPARTMENT OF COMMERCIAL TAXES AND RELIGIOUS ENDOWMENTS

JUDGEMENT

(1.) In these batch of writ petitions the assessment orders/revised assessment orders passed by the respective assessment officers have been challenged on the following grounds:

(2.) There is no dispute that the petitioners in all these writ petitions are running small scale units for the manufacture of sago and starch, and are registered dealers under the Tamil Nadu General Sales Tax Act, 1959 and Central Sales Tax Act, 1956 with the first respondent/assessing officer. For the manufacture of sago, the principal raw material is tuber of sago. These are purchased from agriculturists in and around Salem and Dharmapuri Districts. The petitioners have been selling their goods to Salem Starch and Sago Manufacturers Service Industrial Co-operative Society Limited (hereinafter referred to as the "Sago Serve").

(3.) It is the contention of the petitioners that it was alleged in the meeting held on 22.07.2004 the manufacturers were supplying sago to traders and not to the Sago Serve, resulting in loss of revenue and that demands will be raised based on electricity consumption and on the basis of octroi details in Maharashtra. It is the contention of the petitioners that there is no evidence to show that the petitioners had effected sales within or outside the State without payment of tax. According to the petitioners, in the above said background, the Commercial Tax Department have been required to issue the best of judgment demands on a flat rate basis of electricity consumption. It is the allegation of the petitioners that demands are being raised at the instance of the Sago Serve for promoting its affairs and brow beat the innocent small scale units and not for any bonafide purpose. The further allegation of the petitioners is that the Sales Tax Department is employed to create monopoly of procurement for the sago serve as self-evident from the circulars of the Sago Serve.