1989 (1) TMI 318 - HC - VAT and Sales Tax

Summary

Issues:
1. Rejection of account books by assessing authority.
2. Confirmation of rejection by appellate authorities.
3. Disposal of second appeals by Sales Tax Tribunal.
4. Revisions filed by both assessee and department.
5. Grounds for rejection of account books.
6. Legal precedents regarding non-production of account books.
7. Evaluation of turnover fixation by Sales Tax Tribunal.
8. Decision on the revisions filed by the parties.

Analysis:
The judgment pertains to four revisions arising from a common issue during the assessment years 1980-81 and 1981-82 related to a brick kiln business. The assessing authority had conducted a best judgment assessment after rejecting the account books. Both appellate authorities upheld the rejection but differed in the turnover estimate. Subsequently, second appeals were filed before the Sales Tax Tribunal, which issued a common order in November 1987. This led to the filing of revisions by both the assessee and the department.

The primary contention raised by the assessee was the error in confirming the rejection of account books by the Tribunal. The rejection was based on the non-availability of certain registers during surveys, which the assessee argued should not be a ground for rejection. Legal counsel for the assessee cited precedents where non-production of account books during surveys did not warrant rejection. The judge concurred with this view, emphasizing that the presumption against the assessee due to non-production at surveys is rebutted when produced during assessment. Notably, no defects were found in the account books for the disputed years.

Regarding the turnover fixation by the Sales Tax Tribunal, it was deemed appropriate based on relevant evidence, without any legal errors. Consequently, the revisions filed by the assessee were allowed, accepting their account books for the relevant years, while those filed by the Commissioner of Sales Tax were dismissed. The judgment concluded with no order as to costs, thereby resolving the issues raised by both parties effectively.