2005 (3) TMI 756 - HC - VAT and Sales Tax

Summary

Issues:
1. Rejection of books of account and turnover enhancement
2. Treatment of export pass fee as part of turnover

Analysis:
1. The first issue in this case revolves around the rejection of the dealer's books of account and the subsequent enhancement of turnover. The First Appellate Authority accepted the books of account and disclosed turnover, ruling that the dealer, engaged in the manufacture and sale of Indian Made Foreign Liquor and rectified spirit, had maintained complete manufacturing and sale accounts, eliminating the need for separate accounts for purchases within and outside the state. The Authority also considered the claimed shortage loss of sheera at 2.29 percent, supported by an excise authority certificate. The Tribunal, upon review, found no defects in the books of account, no case of suppression, and upheld the First Appellate Authority's decision, deeming it a factual finding.

2. The second issue pertains to the treatment of the export pass fee as part of the turnover. The export pass fee, a liability of the exporter, was not realized from customers by the dealer nor paid by the dealer, absolving it from any responsibility under the Excise Act to pay the fee. Consequently, both the First Appellate Authority and the Tribunal correctly ruled to exclude the export pass fee from the turnover. The judgment concluded that there were no errors in the Tribunal's decision, leading to the dismissal of both revisions.

In conclusion, the High Court upheld the Tribunal's order, dismissing the revisions under Section 11 of the U.P. Trade Tax Act. The judgment clarified the treatment of the dealer's books of account, the enhancement of turnover, and the exclusion of the export pass fee from the turnover, providing a detailed analysis of each issue based on the findings of the lower authorities and the Tribunal's factual determinations.