STATE OF TAMILNADU Vs. SUJANI TEXTILES PRIVATE LIMITED

JUDGEMENT

(1.) The Department filed the present writ petition not satisfied with the order of the Sales Tax Appellate Tribunal, Additional Bench, Coimbatore made in CTA.No.94 of 1996 dated 1.2.2000 granting the relief in favour of the assessee in respect of the turnover of Rs.4,41,68,207/- as consignment sale and deleting the penalty in a sum of Rs.4,41,682/- in respect of the assessment year 1992-93.

(2.) The facts leading to filing of the writ petition are as follows : The assessee M/s.Sujani Textiles is engaged in the manufacture of cotton yarn and is assessee under Mettupalayam Road Assessment Circle, Coimbatore-18. The account of the assessee under the Central Sales Tax Act was checked and it was found that the claim of exemption of turn over for Rs.4,41,68,207/- as consignment sale to other States was inadmissible. The Assessing Officer, therefore, issued a pre-assessment notice dated 30.9.1994 and after considering the objections filed by the assessee, passed a final order on 31.3.1995 disallowing the consignment sale to the tune of Rs.4,41,68,207/- and levying tax at 2% by treating the same as direct interstate sale and penalty of Rs.13,25,046/- at 150% under Section 9(2)(A) of the Central Sales Tax Act read with Section 12(3)(b) of the Tamilnadu General Sales Tax Act.

(3.) On appeal, the Appellate Assistant Commissioner confirmed the assessment, but reduced the penalty from 150% to 100%. The assessee again filed a further appeal to the Sales Tax Appellate Tribunal, which, by reason of the order impugned in this writ petition dated 1.2.2000, allowed the appeal by setting aside the assessment and penalty in respect of the above said turnover. The correctness of the said order is canvassed in this writ petition.