B. Rajendran :- The assessee a dealer in silver articles and leg chains have reported a total and taxable turnover of Rs. 77,53,957 and Rs. 42,02,730, respectively for the year 1993-94 under the Tamil Nadu General Sales Tax Act, 1959. The assessing officer had disallowed the claim of exemption towards the sale of silver anklets at Rs. 12,25,023 and taxed the turnover at three per cent single point tax and also disallowed the bought note purchases of new silver anklets at Rs. 13,41,528 and this in turn has enhanced turnover of the assessee to Rs. 25,68,258 with the tax of Rs. 50,217, surcharge of Rs. 7,533 and additional sales tax of Rs. 38,534 and penalty of Rs. 60,689. The assessee disputed regarding such tax liability and the levy or penalty before the Appellate Assistant Commissioner, Salem in A.P. No. TNGST 367/95. The Appellate Assistant Commissioner on verification of facts allowed the appeal in full by its order dated March 8, 1999.

Aggrieved by the order of the first appellate authority, the Deputy Commissioner of Salem has preferred the State appeal before the Tribunal. Before the Tribunal, the Revenue mainly placed reliance on the inspection made by Enforcement Wing