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2018 (12) TMI 541 - HC - VAT and Sales TaxUndisclosed sales turnover - Rejection of books of accounts - rejection solely on the ground that the account books and the stock register could not be produced during the survey conducted on 21.04.2012 - Held that:- There does appear to exist undisclosed stock having been discovered by the authorities on 21.04.2012 during the course of survey proceedings. Though, the quantity of excess/undisclosed stock discovered during that survey may itself not be such as may justify the total enhancement made to the turnover, however, it cannot be lost sight that in the present case, the assessee was found to have been indulged in purchase/manufacture and sale of goods outside its regular books of accounts. The books of accounts were not produced on the date of survey and the finding with respect to the shortage and excess in the stock appears to be based entirely on facts, the further finding recorded by the authorities that the assessee had engaged in concealment of his turnover does not appear to suffer from any perversity - the rejection of books of accounts was rightly upheld. Estimation of turnover - Held that:- Though, the goods are claimed to be excisable goods and it is further claimed that there is no other material to establish concealment of turnover, the authorities appear to have rightly considered the electricity consumption disclosed by the assessee itself in the earlier year. In the given facts of the case, the same does not appear to be irrelevant or arbitrary. Consumption of electricity - Held that:- The assessee having remained engaged in the same activity in the earlier years, and the manufacturing activities have also been the same, the consumption of electricity, in such facts, offered a fair basis to make a guess of the estimated turnover - in the present case, rejection of books of account was made on valid basis. Therefore, the authorities have not erred in looking into the electricity consumption for the purpose of making an estimation of concealed turnover. The presentation arising on account of excisable nature of goods stood rebutted by discovery of undisclosed stocks. Benefit of purchase tax - Held that:- Once the assessee deposits the tax on estimated purchase, he would be entitled for the corresponding benefit against payment of tax on turnover of sale. Revision disposed off.
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