1986 (12) TMI 341 - HC - VAT and Sales Tax

Summary

Issues:
1. Rejection of account books and estimation of turnover by assessing authority.
2. Appeal by assessee against rejection of account books and reduction of turnover.
3. Second appeals by both Commissioner of Sales Tax and assessee before Sales Tax Tribunal.
4. Tribunal's decision to accept account books of the assessee.
5. Dismissal of Commissioner of Sales Tax's appeal challenging reduction in turnover.
6. Interpretation of the doctrine of merger in relation to separate appeals filed by parties.
7. Comparison with the Supreme Court decision in Commissioner of Sales Tax v. Vijai Int. Udyog.
8. Consideration of the case law Commissioner of Sales Tax v. Ganesh Flour Mills Co. Ltd.
9. Analysis of the Tribunal's decision and absence of error of law.

The judgment by the Allahabad High Court involved a revision filed by the Commissioner of Sales Tax against the Sales Tax Tribunal's order regarding the rejection of account books and estimation of turnover for the assessment year 1978-79. The assessing authority had initially rejected the account books of the assessee and made an estimate of turnover, leading to an appeal by the assessee before the Assistant Commissioner (Judicial). The Assistant Commissioner upheld the rejection of account books but reduced the turnover. Subsequently, both the Commissioner of Sales Tax and the assessee filed second appeals before the Sales Tax Tribunal. The Tribunal decided in favor of the assessee, accepting their account books and dismissing the Commissioner's appeal challenging the reduction in turnover. The Commissioner argued for rehearing both appeals together based on the doctrine of merger, citing a Supreme Court decision. However, the Court found no merit in this argument as the circumstances in the present case were different, and the parties did not agree to rehearing both appeals. The Court also referenced a previous case law to support its decision.

The Court further analyzed the situation from another perspective, stating that even if both appeals were heard together and the account books of the assessee were accepted, the basis for the departmental appeal on turnover reduction would cease to exist. Therefore, the Tribunal's decision to dismiss the Commissioner's appeal was deemed appropriate. After considering the arguments from both parties, the Court concluded that there was no error of law in the Tribunal's decision. As a result, the revision filed by the Commissioner of Sales Tax was dismissed with costs.