TMI Blog2000 (10) TMI 927X X X X Extracts X X X X X X X X Extracts X X X X ..... y and claimed exemption on a turnover of Rs. 94,36,716, which represented second sales turnover of petroleum products. The petitioner being an agent of M/s. Bharath Petroleum Corporation gets supply of petroleum products only from the Corporation and not from any other source. The accounts submitted by the petitioner were rejected by the Additional Sales Tax Officer, II Circle, Kozhikode and final assessment was completed by order dated August 11, 1993 by estimating the taxable turnover at Rs. 70,77,640 as against Rs. 60 declared. The accounts of the petitioner were rejected mainly on the basis of two inspections conducted in the place of business by the Intelligence Squad, Kozhikode, on October 5, 1991 and on January 19, 1992. 3.. On the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of certain materials of which the petitioner was not given an opportunity to explain his case. He contended that it may be true that when the materials are recovered from the place of business, there is a presumption that it belongs to the assessee. But it is only a rebuttable presumption and the assessee can rebut the presumption, if he was given an opportunity for the same. For example, the petitioner points out one of the items of suppression with regard to 12,000 litres of high speed diesel oil for Rs. 58,922. The above quantity of 12,000 litres is a sale by M/s. Hindustan Petroleum Corporation, Kozhikode, in favour of M/s. Mahe Beach Trading Company, Mahe. The document relied on for the estimate by the assessing officer is a slip No. 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. I understand that in respect of the same transaction, viz., consignment of 12,000 litres of H.S.D. in favour of M/s. Mahe Beach Trading Company, Mahe, as per Invoice No. 17154 dated October 1, 1991 which was an inter-State sale effected by M/s. Hindustan Petroleum Corporation Ltd., in favour of M/s. Mahe Beach Trading Company, Mahe, the inspecting Assistant Commissioner (IIC), Agricultural Income-tax and Sales Tax, Kozhikode, has levied a penalty on M/s. Hindustan Petroleum Corporation Ltd., under section 45A. The basis for levying the penalty is stated to be that M/s. Hindustan Petroleum Corporation Ltd., made an inter-State sale to M/s. Mahe Beach Trading Company, Mahe, from their Elathur depot and the goods did not pass through the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods under invoice No. 17154 instead of taking to Mahe was sold through Prabhakaran Co. Enquiries conducted by the department reveal the C. Abdul Gafoor, Mahe Beach Trading Company, is the real person behind the business of Prabhakaran Co. Even though Prabhakaran Co. is not a dealer of H.P.C. Mahe Beach Trading Company, is a dealer of H.P.C. The goods invoiced of Mahe Beach Trading Company was sold through Prabhakaran and Co. Of course, Mahe Beach Trading Company might have accounted the invoice, but really the goods were sold through Prabhakaran Co. Under the circumstances, a sum of Rs. 58,922 had to be taken as unaccounted purchase made by the assessee from Mahe Beach Trading Co. The above discussion of the assessing officer sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct on materials which may not be accepted as evidence in a court of law that does not absolve him from the obligation to comply with the fundamental rules of justice which have come to be known in the jurisprudence of administrative law as principles of natural justice. However rules of natural justice are not a constant; they are not absolute and rigid rules having universal application". In P.C. Ittymathew Son v. State of Kerala [1976] 37 STC 184, a division Bench of this Court held as follows: "Best judgment assessment should be based on an honest and rational estimate which has a reasonable nexus to the available materials and circumstances of each case. Although the High Court would not enquire into the sufficiency of materials or su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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