1979 (1) TMI 218 - HC - VAT and Sales Tax

Summary

Issues involved: Assessment of turnovers for the years 1968-69 and 1969-70, retraction of sworn statement regarding unbilled cash sales, burden of proof on sales tax department, validity of exclusion of amounts from assessable turnover, differences in taxation under Income-tax Act and Sales Tax Act, acceptance of retraction by assessing authorities.

In the judgment, the Court addressed the issue of the appellant not including sums of Rs. 73,000 and Rs. 72,000 in the assessable turnovers for the respective years. The Appellate Assistant Commissioner initially excluded these amounts, stating that the burden of proof was on the sales tax department to establish an escapement. However, the Board of Revenue revised the proceedings and included the amounts, alleging that the retraction of the sworn statement by the appellant was motivated to avoid sales tax assessment.

Regarding the differences in taxation under the Income-tax Act and Sales Tax Act, the Court highlighted that the courses of taxation are distinct. While income tax is based on quantifying income under specific provisions, sales tax focuses on taxing sales as per the Sales Tax Act. The appellant's retraction from the sworn statement, claiming the amounts were cash credits and not unbilled cash sales, was deemed insincere by the Court.

The Court emphasized that once a voluntary sworn statement is made, an assessee cannot retract without substantial evidence of coercion or compulsion. The appellant's attempt to retract to avoid inclusion in the assessable turnover was viewed unfavorably, with the Court agreeing with the Board of Revenue's decision to include the amounts in the turnovers for the relevant years.

Ultimately, the appeals were dismissed, affirming the decision of the Board of Revenue to include the disputed amounts in the assessable turnovers.