JOTHI CHEMICALS Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THE correctness of the order of the Sales Tax Appellate Tribunal (Additional Bench), Madurai, dated July 13, 2001 in T.A. No. 265 of 1999 in bringing the value of the lorry sold by the assessee for taxation and the imposition of penalty under Section 12(5)(iii) of the Tamil Nadu General Sales Tax Act, 1959 is put in issue in this revision.

(2.) THE simple issue in dispute is that the assessee purchased a chassis from Ashok Leyland and he got the body built over the chassis. After using the lorry for some time, he sold it. According to the Department, the lorry as such is totally a different commodity than that of chassis purchased. For that addition made on the chassis as lorry, tax has to be levied, despite the material used for putting up the body has already suffered tax. As this transaction has not been accepted by the assessee, penalty was also levied by the assessing officer.

(3.) WE also heard the argument of the learned Counsel for the Revenue, who argued for sustaining the penalty and perused the material on record.