1977 TAX. L. R. 1683 ::39 S T C 325 ::ILR (1976) 2 Mad 53

Madras High Court

Hon'ble Judge(s): Ismail, Sethuraman , JJ

(A) Tamil Nadu General Sales Tax Act (1 of 1959) , S.16, S.32, S.55— There is no power of review in the assessing authority independent of Sections 16, 32 and 55. (Para 4) (B) Tamil Nadu General Sales Tax Rules (1959) , Rule 6(d)— Exemption under - Sale of 'his business' to be understood in the commercial sense - Branch is a unit of business and its sale would be covered by rule 6 (d). The words 'his business' occurring in the rule do not mean that the dealer must go out of the business altogether. The word 'business' has to be understood in a commercial sense i. e. in the sense understood by commercial men. The commercial men would understand the word 'business' as a Unit which produces profits. The branch in that sense would be a unit of business. It is a separate unit which could be dealt with. When once the branch is recognised as an independent unit, then vis-a-vis that unit of business, the assessee had closed down his business as a whole.(Para 5) (C) Tamil Nadu General Sales Tax Act (I of 1959) , Sec.2(r)(n)(d)— Turnover - 'Sale' - Business - Sale must be during the course of business as defined by Section 2 (d) - Sale proceeds of closure of a branch by sale cannot b....