No Sales Tax Addition on GP difference without Rule 18-C Enquiry: Madras HC

Tvl. Swarna Steels Vs State of Tamil Nadu (Madras High Court) Madras High Court has allowed a Tax Case (Revision) filed by Tvl. Swarna Steels, setting aside a sales tax addition made by the authorities. The court reiterated its stance that a mere difference in gross profit between a first and second sale cannot, by itself, be a legal ground for making an addition under Section 12-A of the Tamil Nadu General Sales Tax Act (TNGST Act), without proper inquiry as per prescribed rules. The current matter involved an identical issue to a previous case concerning the same assessee for Assessment Year...