9911796707
TMI Blog2007 (1) TMI 585X X X X Extracts X X X X X X X X Extracts X X X X ..... so considered the assessee's submission regarding the difference in the production of 23 microns and 12 microns & observed that the appellant has nowhere mentioned that the chilling plant has ever remained closed and similar is the position with regard to the supply of electricity for labourers. The High Court has considered these reasons and has not interfered with the findings of the Tribunal as these are findings of fact and hence the High Court, which could only interfere if there is an error of law, rightly rejected the revision. X X X X Extracts X X X X X X X X Extracts X X X X ..... s also the High Court, were of the view that since electricity consumption by the assessee had increased it can be reasonably inferred that the assessee's production must also have increased. Since the production had in fact gone down, it could be reasonably inferred that the assessee had suppressed its production. The appellant explained that during the period in question it had switched over from production of 23 micron goods to production of 12 micron goods. According to it, electricity consumption in the manufacturing of 23 micron goods was less than that in manufacturing 12 micron goods. It was explained that the appellant was now manufacturing goods of 12 micron, which requires more electricity consumption as compared to the good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant, submit- ted that the higher consumption of electricity is not a good ground for rejection of the books of account. On the other hand, learned counsel for the respondent submitted that the appellant had not maintained proper books of account. In this connection we may refer to the electricity consumption and production in the appellant's factory for the three assessment years in question, which are as follows: Assessment Year Production Electricity Consumed 2000-01 402 MT 5,13,596 2001-02 268 MT 6,38,164 2002-03 314 MT 6,68,736 A perusal of the above figures shows that while the electricity consumption has clearly been going up, the production has gone down from 402 M. T. to 314 M. T. Ordinarily, when electricit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n as stated above. In our opinion this submission cannot be accepted. It may be noted from the orders of the Deputy Commissioner (Appeals), the Tribunal and the High Court that the assessee's books of account have been rejected on several grounds. For example, the assessee had not produced the relevant books showing the payment of wages to the workers. This book was very important because had it shown that the total wage bill of the unit was going up, it would be a reasonable inference to draw that production was also going up. Non-production of such a book despite several opportunities being given by the authorities indicates that the assessee was trying to suppress its production. Similarly, non-production of the production register ..... X X X X Extracts X X X X X X X X Extracts X X X X
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