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Madras High Court
The State Of Tamilnadu Rep. By The … vs Tvl. Govel Plastic Pvt. Ltd., … on 18 July, 2002
Equivalent citations: 2002 128 STC 577 Mad
Author: V Sirpurkar
Bench: V Sirpurkar, N Balasubramanian


ORDER

V.S. Sirpurkar, J.

1. Judgment by the Tamil Nadu Sales Tax Appellate Tribunal is challenged herein. The assessing officer, viz. The Commercial Tax Officer determined the total and taxable turnover of the assessee at Rs.10,52,944.33 and Rs.10,23,873.03 respectively. In appeal, a question was raised as regards the turnover of Rs.38,100/-, which was relating to the cost of making dies and tools for use in manufacture of component parts for customers in other States. The Appellate Assistant Commissioner had sustained this turnover and dismissed the appeal filed by the assessee. In the second appeal, the Tribunal, however, took the view that there would be no question of any tax liability more particularly under the Central Sales Tax Act particularly because the dies which are manufactured would never leave the premises and would never travel outside the State. In that view, there will be no question of such dyes and tools being covered under Sec. 3 of the Central Sales Tax Act. The Tribunal allowed the appeal in respect of the turnover relating to dies, tools, etc. The present revision is against the aforementioned order of the Tribunal.

2. Learned Government Advocate tried to suggest that there was, in fact, a turnover which was created by the sale and, therefore, the finding of the appellate authority was incorrect. In our opinion, the argument is basically incorrect because the transaction cannot be said to be a ‘sale’ much less within the parameters of Sec. 30 of the Central Sales Tax Act as there is no movement of the goods at all. The goods have remained with the assessee alone because they are the dies and tools and it is from those dies and tools that the finished products are manufactured. Since such dies never moved out of the factory premises of the assessee, there will be no question of tax liability. The order of the Tribunal is absolutely correct. The revision has no merits and it is dismissed. No costs.


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