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2016 (10) TMI 467 - HC - VAT and Sales TaxEvaluation of stock - inspection - Government Order passed stating that the stock discrepancy not exceeding 2% of the total volume of business may not taken serious notice of and the Inspecting Officer should be forbidden from making notice of any proposal based on such discrepancies to the assessing authority concerned and to ignore the discrepancy based on the general performance of the assessee in the past years - When the stock variation is less than 2% of the total volume of business, what the Department has to do, especially when the Enforcement Wing Officials conducted an inspection in the place of business of a dealer? - Held that: - The Government Order appears to have been given only to alleviate unnecessary problems faced by the dealers. Nevertheless the Government has also noted that this sort of discrepancy can be ignored based on the general performance of the assessee in the past years. Therefore, if an assessee has come to adverse notice of the Department on earlier occasions, he cannot as a matter of right claim that by applying the Government Order, the discrepancy should be ignored. Therefore, for each assessment viz-a-viz, a dealer should be specifically considered, if such an issue arises. The Tribunal failed to go into the correctness of the findings recorded by the Appellate Assistant Commissioner in its order dated 12.2.2001, on a perusal of the connected records and documents as well as the stock reconciliation statement by the Enforcement Wing Officials was proper and justified. Merely by quoting the order of the Assessing Officer, and allowing the Appeal filed by the Revenue, is erroneous and the impugned order is utterly perverse. Further more, there is no specific finding to the effect that the Appellate Assistant Commissioner has committed an error in allowing the Appeal nor there is any record which the Tribunal relies upon to show that the findings recorded by the Appellate Assistant Commissioner are factually incorrect - petition allowed - decided in favor of petitioner.
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