STATE OF TAMIL NADU Vs. PULLICAR MILLS LIMITED

JUDGEMENT

(1.) REVISION under Section 38 of the Tamil Nadu General Sales Act, 1959 against the Order dated 18.10.2002 passed in CTA No. 241 of 1995 on the file of the Sales Tax Appellate Tribunal (Additional Bench) Coimbatore.) The revenue has come forward with this revision petition.

(2.) THE question of law raised in this revision reads as under:- i) Whether in the facts and circumstances of the case, the Tribunal is legally correct on holding that the cotton borrowed and returned on loan basis is not a sale as defined under Section 2 (n) of the Tamil Nadu General Sales Tax Act, 1959? ii) Whether the order of the Tribunal is right in affirming the deletion of consequential penalty levied uner Section 12 (5) (iii) of the Tamil Nadu General Sales Tax Act, 1959?

(3.) THE Tribunal has taken the view that when once it is proved that what was borrowed was cotton and that the borrowed cotton was returned, which was also shown to the satisfaction of the assessing authority, there was no element of sale involved as defined under Section 2 (n) of the Tamil Nadu General Sales Tax Act and therefore there can be no further tax liability as determined by the assessing authority and confirmed by the appellate Assistant Commissioner.