2014 (1) TMI 1748

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..... ,328 and in respect of liquor sales,  it was Rs. 2,52,51,460. The intelligence officer conducted an inspection in the premises of the  petitioner on February 13, 2007. It was found that there is a purchase  suppression of Rs. 22,960 with reference to soft drinks, snacks and provisions. No irregularity was found out regarding the purchase or sales of  liquor. On receiving notice under section 67 of the Kerala Value Added Tax  Act ("the KVAT Act", for short), the assessee compounded the same by  paying a compounding fee of Rs. 2,135. The assessing authority issued a  further notice dated December 3, 2009 under section 25(1) of the KVAT Act  proposing to complete the escaped assessment, rejecting the re .....

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..... detected at the fag end of the year was only  Rs. 22,960 ? Can such solitary instance of alleged turnover suppression be termed as pattern of suppression warranting estimated tax- able turnover on a best judgment basis ?  (3) Whether an estimation of turnover on a best judgment basis  legal or permissible in an exercise of escaped assessment proceedings  under section 25 of the KVAT Act, 2003 ?" The learned counsel for the petitioner contended that there was no justification on the part of the Tribunal to have interfered with the order passed  by the first assessing authority. The inspection was conducted at the fag  end of the year and the suppression noticed was only for Rs. 22,960. On  the basis of .....

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..... he turnover at Rs. 14,20,328. Under these circumstances, we are of the view that the assessing officer as well as the Tribunal is justified in rejecting the claim of the petitioner. Having regard to the questions of law raised in the memorandum of  appeal, we do not think that any substantial question of law arises for  consideration as the factual issues are not in dispute. The only issue is with  reference to working out of estimated turnover. When the officer had  adopted a method, which is reasonable, we do not think that the questions  of law raised arise for consideration in this appeal. No grounds are made out to challenge the above order passed by the Tribunal and accordingly, we dismiss the revision.
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