CASTROL INDIA LIMITED Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THIS tax case revision petition has been filed by the dealer who is an assessee on the file of the Commercial Tax Officer, Mannadi (East), Assessment Circle, chennai. The assessee-dealer during the course of the assessment year 1991-92 reported a total and taxable turnover of Rs. 2, 75, 63, 222 and Rs. 2, 70, 69, 402 by filing the return under the provisions of the Central Sales Tax Act, 1956. The assessing authority determined the total and taxable turnover at Rs. 41, 76, 77, 025 and Rs. 7, 80, 11, 468 respectively for the reasons stated in the assessment order.

(2.) THE dispute in the tax case revision is only confined to a sum of Rs. 3, 84, 650 and the dispute arises in the following manner : THE assessee-company has a corporate office in Bombay. Another company by name, M/s. Indtech Speciality Chemicals Limited, Bangalore, has merged with the assessee-company with effect from January 1, 1992 as per the orders of the High court of Judicature at Bombay dated January 27, 1993 in the Company application No. 261 of 1992. THE High Court of Karnataka at Bangalore also sanctioned the scheme of amalgamation in C. P. No. 135 of 1992 dated February 12, 199

(3.) MR. T. Mathi, learned Government Advocate, on the other hand submitted that in this case if transfer date is taken as January 1, 1992, it would lead to tax evasion and applying the principle of the Supreme court in the case of Mcdowell & Co. v. Commercial Tax Officer it is submitted that if this Court holds that die amalgamation takes effect even from the transfer date, it will lead to tax evasion and the tax avoidance should not be encouraged.