2007 (6) TMI 562 - HC - VAT and Sales Tax

Summary

Issues involved: Assessment of taxable turnover for the year 1997-98 based on suppression detected by Intelligence Wing of the Department.

Summary:
The revision petition was filed against the orders passed by the Kerala Sales Tax Appellate Tribunal for the assessment year 1997-98. The assessee, a dealer registered under the Kerala General Sales Tax Act and the Central Sales Tax Act, was engaged in the sale of various stones. The assessing authority enhanced the taxable turnover of the assessee based on information from the Intelligence Wing of the Department. The first appellate authority reduced the addition made by the assessing authority, and the Tribunal further reduced it to one and a half times the suppression detected. The assessee challenged this decision in a Tax Revision Case.

Legal Issues:
1. Whether the Tribunal was justified in sustaining the addition at one and a half times the alleged suppression when penalty proceedings were pending consideration.
2. Whether the addition made by the Tribunal had a rational nexus to the available materials on record.
3. Whether the Tribunal was justified in fixing the quantum of addition at one and a half times the suppression without remanding the matter to the assessing authority for fresh consideration.

Court's Decision:
The Tribunal's decision to reduce the addition to one and a half times the suppression detected was upheld. The Court stated that for them to interfere in a revision, the Tribunal must have either erroneously decided the question of law or failed to decide it. Since the Tribunal's decision was based on facts and not on a legal question, the revision was rejected. The relief sought in an application was also rejected accordingly.