2009 (12) TMI 896 - HC - VAT and Sales Tax

Summary

Issues:
Appeal against suo motu revision of assessment order by Appellate Assistant Commissioner based on defects found in accounts and materials collected during a search of dealer's premises.

Analysis:
The case involves an appeal by the assessee against the suo motu revision of the assessment order by the Appellate Assistant Commissioner. The assessing officer had rejected the accounts due to defects and materials found during a search at the dealer's premises. The total and taxable turnover was determined at Rs. 85,79,460, with a penalty imposed under section 12(3) of the TNGST Act. The Appellate Assistant Commissioner allowed the appeal, citing lack of purchase or sale bills, absence of confirmation statement, and disownment of records by the appellant. The Joint Commissioner, after examining the matter, found the Appellate Assistant Commissioner's order erroneous and prejudicial to revenue, leading to the restoration of the assessing officer's order.

The inspection and search of the dealer's place of business and residence revealed books and slips with names and addresses of dealers whose registration certificates were canceled. The assessing officer obtained bills from relevant authorities showing these dealers were of a different nature, with canceled certificates. The appellant was given opportunities to contest the case, request details, and cross-examine individuals, but the request for cross-examination was denied. Despite materials being found at the dealer's premises, the appellant denied their connection, leading to the Joint Commissioner's decision to revise the order.

The Appellate Assistant Commissioner's remittal of certain turnover related to dealers with canceled certificates was deemed unnecessary, as these dealers had not taken steps to rectify the canceled certificates. The Joint Commissioner's revision was based on the evidence suggesting clandestine transactions and the correctness of canceling registration certificates. The court found no illegality in the Joint Commissioner's decision to set aside the Appellate Assistant Commissioner's order and restore the assessing officer's assessment. Consequently, the appeal was dismissed without costs.