B VENKATASAMY Vs. DEPUTY COMMERCIAL TAX OFFICER ARAKONAM

JUDGEMENT

(1.) TAX Case Revision filed against the order dated 25.9.1998 passed by the Sales TAX Appellate Tribunal, Chennai in T.A. No,511 of 1997.) The assessee has filed this tax case revision against the order dated 25.9.1998 passed by the Sales TAX Appellate Tribunal, Chennai in T.A. No,511 of 1997.

(2.) THE assessee, a railway contractor, engaged in Works Contract. For the assessment year 1990-91, he had purchased G.I. pipes, G.I. pipe bond and lead, involving a turnover of Rs.4,61,264/- on issue of Form XVII, availing concessional rate of tax. THE learned Assessing Officer, at the time of check of accounts, noticed that the items purchased by the assessee was not used in the manufacture or production of new commodity falling under the I Schedule but only used the goods in execution of works contract as per the conditions of Section 3(3) read with Rule 22 of the Tamil Nadu General Sales Tax Act,1959 and as per the Assessing Officer, the goods purchased on the issue of Form XVII should have been used in manufacture or production of a new commodity falling under First Schedule of Tamil Nadu General Sales Tax Act, 1959 for sale within the State of Tamil Nadu. Having come to the conclusion that there was no production or manufacture involved with the purchase of materials on issue of Form XVII, he levied the tax on the differential rate of tax at 5%.

(3.) THE following substantial questions of law have arisen in this tax case revision:-