TMI Blog2022 (3) TMI 1387X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal has in the impugned order restored the order of the STO holding the reduction in enhancement by the ACST to be unwarranted. 3. While admitting the present revision petition on 20th February 2008, this Court framed the following question of law for consideration: Whether in the facts and circumstances of the case the enhancement of turnover in the absence of any material to establish that goods found short have been sold is lawful and valid as per the ratio of Mahabir Rice Mill v. State of Orissa 1983 54 STC 218 (Ori)? 4. This Court has heard the submissions of Mr. Jagabandhu Sahoo, learned Senior Counsel appearing for the Petitioner and Mr. S.S. Padhy, learned Additional Standing Counsel for the Sales Tax Department. 5. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed shortage of stocks. As explained by this Court in Laxminarayan Sawalram v. State of Orissa (order dated 20 th July, 1971 in OJC No.286 of 1968), unless the Department is further able to show that the suppressed stocks were sold by the Assessee, there cannot be an automatic enhancement of the taxable turnover. 8. For the aforementioned reasons, 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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