Sivakumar and Co. Vs Tamil Nadu Sales Tax Appellate Tribunal (Madras High Court)
The Madras High Court, in the case of Sivakumar and Co. vs Tamil Nadu Sales Tax Appellate Tribunal, upheld an order that denied a tax exemption to a petitioner who failed to physically segregate goods purchased within Tamil Nadu from those purchased from other states. The petitioner, Sivakumar and Co., an assessee dealing with gingelly seeds, had claimed an exemption on the inter-state sale of seeds that had already been taxed at the first point of sale within Tamil Nadu. This claim was based on a government order (G.O.No.3602, Revenue, dated 28.12.1963). The petitioner argued that it was entitled to this exemption for seeds purchased from other states because it maintained separate books of accounts for local and inter-state purchases.
However, the Commercial Tax Officer denied the exemption after an inspection on July 20, 1994, found that the stocks of gingelly seeds were physically mingled. The petitioner appealed to the Appellate Assistant Commissioner (Commercial Tax), who reversed the initial order and granted the exemption. The state then appealed this decision to the Sales Tax Appellate Tribunal, which set aside the order of the Appellate Assistant Commissioner and confirmed the Commercial Tax Officer’s original assessment. This led to the petitioner filing a writ petition with the Madras High Court.
