(Writ Appeal filed under Clause 15 of the Letters Patent against the order dated 9.8.2006 passed in W.P.No.25001 of 2006 on the file of this Court.)

A.P. Shah C.J.,

Admit. Learned Special Government Pleader appearing for the respondent waives service. By consent, the writ appeal is taken up for hearing.

2. The appellant/assessee is a dealer in machinery spares. For the assessment year 2003-2004, the appellant has reported a total and taxable turnover of Rs.73,88,596/- and Rs.73,69,588/- by filing Form A1 under the Tamil Nadu General Sales Tax Act, 1959 (hereinafter referred to as ‘the Act’). The appellant’s accounts were called for by the assessing authority for scrutiny. Though the assessing authority has accepted the turnover reported by the appellant and also mentioned that the purchases were covered by proper bills, yet, rejected the turnover relating to concessional rate of tax against Form XVII on a turnover of Rs.5,78,734/- and assessed at 12% on the ground that the purchasers have not purchased the goods for the use in manufacture of other goods as either raw materials or consumables. Consequently, the assessing authority assessed the tax at Rs.62,263/- and imposed