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N Balasubramanian, Ratnam
State of Tamil Nadu
Versus
Devendra Electricals
Decided on : 7/10/1982
.
Exemption - Second Sales - The court upheld the assessee's claim for exemption on the ground that the sales were second sales in the State, relying on the principle established in the case of Govindan & Co. v. State of Tamil Nadu [1975] 35 STC 50.
Fact of the Case:
The petitioner, Devendra Electricals, claimed exemption on the sales turnover of goods purchased from Honesty Electricals, citing them as second sales in the State. The assessing authority rejected the claim due to the inability to establish that the vendor had suffered tax on the transactions.
Finding of the Court:
The Tribunal accepted the petitioner's contention, relying on the principle established in Govindan & Co. v. State of Tamil Nadu [1975] 35 STC 50, and deleted the turnover in question from the assessable turnover. The court dismissed the revision, upholding the Tribunal's finding.
Issues: The main issue was the claim for exemption on the ground of second sales in the State, and the requirement to establish that the vendor had suffered tax on the transactions.
Ratio Decidendi: The court relied on the principle established in Govindan & Co. v. State of Tamil Nadu [1975] 35 STC 50, which stated that it was not necessary for the assessee to establish that the vendor had also paid the single point tax, once it was established by evidence that the vendor had sold the goods to the assessee.
Final Decision: The petition was dismissed, and the court upheld the finding of the Tribunal, allowing the exemption claimed by the assessee.
balasubrahmanyan, J.
1. The petitioner in this case, by name Devendra Electricals, purchased certain goods from another registered dealer by name Honesty Electricals. Those goods were resold by the assessee. In respect of the sales turnover of those goods the assessee claimed exemption on the ground that they were second sales in the State. In the course of assessment the assessee produced before the assessing authority the invoices issued by the assessee's vendor, Honesty Electricals, and also the registration number of that concern. The assessing authority, however, turned down the claim of the assessee for exemption on the ground of the sales being second sales by reasons only of the fact that the assessee was not in a position to establish that its vendor had suffered tax in regard to the transactions under which the assessee purchased the concerned goods. When the matter was taken in appeal before the Tribunal the assessee cited the decision of this Court in Govindan & Co. v. State of Tamil Nadu [1975] 35 STC 50 and contended that when it was established by evidence that Honesty Electricals had sold the goods to the assessee it was not necessary for the assessee to further establish that that concern had also paid the single point tax.
2. The Tribunal accepted this contention and deleted the turnover in question from the assessable turnover.
3. In this revision, the order of the Tribunal is questioned, but having regard to the principle laid down by this Court in Govindan & Co. v. State of Tamil Nadu [1975] 35 STC 50, and having regard to the material facts to which the Tribunal had adverted in its order, there is no scope for our interference in this revision so as to uphold the finding of the Tribunal. This petition is dismissed.
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