3.According to the assessing authority, the petitioner has effected sales of 'Auto Kits' as a single unit whereas the kits ought to be taxed in terms of Section 3(J) of the Act, since they comprise of three different processes such as, Wheel sprocket, small sprocket and chain. Moreover the assessing authority was of the view that there is a transfer of property in retreading work, and the turnover relatable to the work of retreading is liable to re-sale tax in terms of Section 3(H) of the Act. He also proposed, in the absence of Form-17, to reject the claim of concessional rate of tax in terms of Section 3(3) of the Act. Since the original purchase bills had not been produced by the dealer in respect of the second sales turnover, the turnover was also proposed to be assessed at the higher rate. Receipts of labour charges and retreading charges were proposed to be brought to tax and exemption claimed proposed to be denied, on account of non production of evidences in this regard. The assessing authority noted that no books of accounts had been produced and thus proposed the finalisation of the assessment to the best of his judgment. The above proposals were in addition to the levy of penalty. The petitioner, vide replies dated 12.04.2008 and 14.05.2008 sought some time to submit supporting materials, since it was engaged in the preparation of assessment for the previous year. On 28.05.2009 some of the particulars sought for, such as Annual Report, revised returns and tax remittance details were circulated.
