NALVAR PROVISION STORES Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) WHILE the tax revision case in T.C. (R) No. 167 of 1999 is against the order of the Sales Tax Appellate Tribunal (Main Bench), Madras dated July 9, 1991 in upholding the levy of 10 per cent tax on the first sale of milk powder, the revision in T.C. (R). No. 2767 of 1997 filed by the Revenue is against the deletion of penalty under Section 12(5)(iii) of the Tamil Nadu General Sales Tax Act, 1959 (hereinafter called "the Act") in the abovesaid order of the Tribunal.

(2.) THE facts leading to the present revision cases are as follows :

(3.) IN the second appeal, the Appellate Tribunal also upheld the levy of tax by following the ratio of the decision in Milk Food Limited v. Commercial Tax Officer, Bhowanipur Charge [1991] 81 STC 67 (WBTT) wherein it was held that "milk" and "milk powder" are not synonymous and hence, milk powder is not an item exempted from tax. As regards penalty, the Appellate Tribunal observed that the turnover of milk powder is included in accounts and there was no mala fide intention in not disclosing the same as taxable turnover and therefore, no penalty is warranted. Accordingly, the penalty sustained by the Appellate Tribunal was deleted.