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2022 (3) TMI 1387 - HC - VAT and Sales TaxEnhancement of turnover in the absence of any material to establish that goods found short have been sold is lawful and valid - Applicability of decision of MAHABIR RICE MILL VERSUS STATE OF ORISSA [1980 (9) TMI 268 - ORISSA HIGH COURT] where it was held that the dealer was liable to tax on sale of gunny bags as estimated by the assessing officer. HELD THAT:- On perusal of the order of the ACST, the Court finds that the order is an elaborate one discussing in detail the fraud reports on the basis of which the enhancement was sought to be made. In particular, the ACST appears to have carefully analyzed the materials placed on record and found that explanation was available for at least 50% of the so called sale suppression. It is on that basis that the enhancement as ordered by the STO was reduced by almost 50%. The order of the ACST when read carefully does not give impression that it was done in a flippant manner or without discussing the evidence. On the contrary, the discussion is elaborate and involves very minute analysis of the entire evidence. The Court is therefore not able to concur with the Tribunal for reversing the order of the ACST and restoring the order of the STO as far as the enhancement of taxable turnover is concerned. The Court is unable to sustain the reasoning of the Tribunal for restoring the order of the STO and reversing the order of the ACST. The question framed by this Court is answered in the negative by holding that the enhancement of turnover, in the absence of any material to establish that the goods found short have been sold, is neither lawful nor valid and is contrary to the law explained by the Court in Mahabir Rice Mills. The question is accordingly answered in favour of the Assessee and against the Department - the revision petition is disposed off.
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