1995 (7) TMI 407 - HC - VAT and Sales Tax

Summary

Issues:
1. Suppression of sales turnover based on duplicate bill numbers.
2. Imposition of penalty under section 12(3) of the Act for wilful suppression.
3. Suppressed consumption of C.R. sheets not accounted for in manufacturing almirahs.
4. Estimation of suppressed sales and purchase turnover based on discrepancies in C.R. sheet stock.
5. Justifiability of multiple additions for different instances of suppression.
6. Assessment of total turnover and additions made by the Tribunal.

Issue 1: Suppression of sales turnover based on duplicate bill numbers
The case involved the detection of two sale bills with the same number for different sales, leading to an estimated suppressed turnover of Rs. 1,67,700. The authorities concluded that the assessee maintained two sets of bill books, and the sales from one set were not reflected in the regular accounts. The Tribunal upheld the estimated suppression, as the assessee failed to provide evidence to counter the estimation.

Issue 2: Imposition of penalty under section 12(3) of the Act for wilful suppression
The assessing authorities imposed a penalty under section 12(3) of the Act due to wilful suppression of sales, particularly the sale not recorded in the books. The Court upheld the penalty, stating that when there is wilfulness in not maintaining accurate accounts, the penalty is justified.

Issue 3: Suppressed consumption of C.R. sheets not accounted for in manufacturing almirahs
The inspection revealed suppressed consumption of C.R. sheets in manufacturing almirahs. The assessing officer estimated the suppressed quantity at 851.800 kgs. based on discrepancies in stock and production requirements.

Issue 4: Estimation of suppressed sales and purchase turnover based on discrepancies in C.R. sheet stock
Further discrepancies in C.R. sheet stock led to estimations of suppressed sales and purchase turnover, which were initially deleted by the Appellate Assistant Commissioner but later restored by the Tribunal based on the assessing officer's estimates and available details.

Issue 5: Justifiability of multiple additions for different instances of suppression
The Court addressed the multiple additions made for various instances of suppression, emphasizing that each addition was based on different findings and periods, justifying the Tribunal's decision to uphold the additions.

Issue 6: Assessment of total turnover and additions made by the Tribunal
After considering all irregularities and additions, the total turnover reported by the assessee and the additions made by the Tribunal, the Court concluded that the additions were reasonable and dismissed the tax case revision.

In conclusion, the Court upheld the estimated suppressed turnover, penalty for wilful suppression, and additions based on discrepancies in C.R. sheet stock, finding them justified based on the evidence and assessments presented. The total turnover and additions were deemed reasonable, leading to the dismissal of the tax case revision.