MOTI AND COMPANY Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THE assessee has come up in appeal against the order made by the Joint Commissioner exercising suo motu revisional power under section34 of the Tamil Nadu General Sales Tax Act, 1959 read with section 9 (2) of the central Sales Tax Act, 1956 with regard to the assessment of the appellant for the year 1979-80.

(2.) THE assessing officer had included in the turnover of the assessee, for the purpose of assessment under the Central Sales Tax Act excluded by the appellate authority in the appeal filed by the assessee against the assessment order by the Assistant Commissioner. THE order in appeal was passed on October 16, 198 1 and the order in the suo motu revision was passed on December 27, 198 5. THE show cause notice had been issued by the Commissioner on June 1, 198 5.

(3.) FOUR years after that order was passed by the appellate Assistant Commissioner, the Joint Commissioner, revised that order after hearing the assessee. The reason given by the Joint Commissioner for holding that these sales are inter-State sales is that if the broker had taken delivery locally from the dealer as an agent of the outside State buyer, then the consignor should be the broker and not the dealer as the way bills proved that the consignor is only the dealer and not the broker, the sale was by the assessee and buying outside the State and that sale had occasioned the movement from the assessee to the out of State buyer. The Commissioner did not advert to the conditions in the sale note that the Goods had been sold at ex-godown coonoor/or the contentions of the assessee that the delivery was effected pursuant to the orders from the broker and that the transport charges incurred by the assessee was subsequently reimbursed or would be reimbursed by the buyers, from outside the State. The finding of the Commissioner was that the assessee was the consignor of the goods and not the broker.