TMI Blog1997 (4) TMI 470X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assistant Commissioner (Assessment), Sales Tax Office, Special Circle-I, Ernakulam. For the assessment year 1989-90 the petitioner filed a return declaring a total and taxable turnover of Rs. 2,40,36,961.02 and Rs. 2,37,64,324.60 respectively. The assessing authority rejected the return and accounts and completed the assessment on best judgment basis estimating the taxable turnover at Rs. 2,37,64,324.60. The accounts were rejected on the ground that the officials of the Inter-State Investigation Cell intercepted lorry No. KRC 2073 at Kanakary in Kottayam District and found that medicines worth Rs. 3,05,576.14 consigned from Bangalore to Ernakulam as evidenced by the documents covering the goods under transport were being transported bey ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Kottayam by the Inter-State Investigation Cell and the imposition of penalty under section 29A of the Act. Learned counsel submitted that the goods were despatched from Bangalore to Ernakulam through M/s. Raj Kamal Transport, which is a public transport organisation. The counsel also submitted that it appears that the vehicle contained some contraband goods, which was being carried, which the transporters wanted to unload at the earliest for their own safety, and it was in those circumstances that the driver without even the knowledge of the petitioner-company paid the security and got the vehicle and the goods released. Learned counsel also submitted that the notice issued by the enquiry officer to the petitionercompany was taken by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment Pleader further submitted that the Sales Tax Officer (Enquiry), conducted further investigation as contemplated under section 29A of the Act with notice and opportunity to the petitioner and imposed a penalty of Rs. 45,837, which was paid by the petitioner without demur. He therefore submitted that the addition sustained by the Tribunal was perfectly justifiable. 6.. We have considered the matter. The only ground on which the assessing authority has rejected the accounts and estimated the turnover on best judgment assessment is the imposition of penalty under section 29A of the Act in respect of a consignment of H.L. medicines worth Rs. 3,05,576.14 transported from head office at Bangalore to petitioner's premises at Ernakulam and de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of 5 times appears to be excessive and disproportionate. In the absence of any other defects and the assessing authority has no dispute, that the purchase consignment was not accounted, the estimate of the entire turnover on the basis of the purchase value is unreasonable and unfair. Considering the circumstances of the case, I find that an addition of two times the purchase value of the goods transported will meet the ends of justice." On this aspect of the matter the Appellate Tribunal after noticing the above, observed as follows: "In the circumstances we are of the view that the two times addition made by the first authority is on the high side. As there is no case of any other omission or suppression, there is no reason for making ..... X X X X Extracts X X X X X X X X Extracts X X X X
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