FORBES AND CO Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) THESE writ petitions have been filed praying for the issuance of a Writ of Certiorari calling for the records on the file of the respondents herein in TNGST. Asst. No. 2540196/96-97, dated 23. 10. 2003; TNGST. Asst. No. 2540196/99-2000 dated 5. 11. 2003; TNGST. Asst. No. 2540205/99-2000 dated 19. 11. 2003; TNGST. Asst. No. 2540820/2000-01; TNGST. Asst. No. 2540205/2000-01, dated 5. 11. 2003 and TNGST. Asst. No. 2540206/2000-01, dated 5. 11. 2003 and quash the same as illegal.

(2.) THE petitioners are tea brokers, auctioneers and registered dealers under the Tamil Nadu General Sales Tax Act, 1959 (hereinafter referred to as "the Local Act") as well as the Central Sales Tax Act, 1956, (hereinafter referred to as "the CST Act" ). According to the petitioners, the petitioners conducted their business for and on behalf of the producers of tea and they assist the tea estate owner to sell their products and for the service rendered by the petitioners they receive their brokerage at 1%. For the respective assessment years, the activity of the petitioner has been considered as sale and the petitioners were subjected to assessment. In respect of the sale regarded as a local sale, the TNGST assessments were made. In respect of the sale to persons residing outside the State of Tamil Nadu, it had been regarded as an Inter-state sale and assessed as such on accepting C - form at the lower rate. While that being so, taking note of the ratio laid down by this Court in the case of MOTI and COA. VS. STATE OF TAMIL NADU reported in (1999) 113 STC 53 and W. A. SHAH ENTERPRISES (P) LIMITED VS. DISTRICT FOREST OFFICER reported in (2003) 129 STC 299, the respondent has formed an opinion that those sale regarded inter state sale was not occasioned the movement of those goods from Tamil Nadu to other State or the movement of those goods from Tamil Nadu on purchase was not pursuant to a contract of sale and are thus not inter state sale but exigible to tax under the Local Act. On that reason issued pre-revision notices and upon hearing the objections raised by the petitioners, the assessing officer, concluded that the sales effected by the petitioners in the auction sale were all intra-state sale and revised assessments under the T. N. G. S. T. Act. The said assessments made against the respective petitioners are impugned in these writ petitions.

(3.) LEARNED Senior Counsel appearing for the petitioners submitted that in respect of the respective assessment years, the respondent assessed the respective petitioners taking into account the transactions both under the TNGST Act and CST Act and they have become final. Of course it is open to the respondent to revise the assessment. If the respondent intends to revise the assessments of the transaction, which are the subject matter of the earlier assessments, the earlier assessment orders have to be set aside and thereupon afresh assessment orders have to be made. The assessments cannot be revised on change of opinion.