9911796707
TMI Blog1968 (9) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... The Sales Tax Officer, Jabalpur Circle I, who passed the original order of assessment enhanced the figure of the gross turnover to Rs. 16,34,000. He also found that the dealer committed defaults in filing returns and payment of tax. He, therefore, imposed a penalty of Rs. 20,000. The dealer claimed that he was entitled to the benefit of the concessional rate of tax in respect of goods sold to the Government departments. This was allowed by the Sales Tax Officer to the extent of the certificates produced before him. The dealer filed an appeal against the order of assessment before the Appellate Assistant Commissioner of Sales Tax. It appears that the dealer produced in appeal the remaining certificates in respect of sales to the Government d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... properly exercised in the matter of determining the liability for penalty and the quantum thereof; and (3) Whether on the facts and circumstances of the case the assessee could be denied the benefit of the concessional rate of assessment provided by Notification No. 2044/1885/V.S.T. dated 8th August, 1962, because certain departments of the Government, to whom goods were sold, failed to supply prescribed certificates in time in spite of best efforts of the assessee. 3.. As regards the first question, it may be stated that the Sales Tax Officer called upon the dealer by a notice issued in Form XVI to produce his account books. The dealer thereupon produced cash-books, sales register, ledgers, cash memos, receipt books for recovery of ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not wholly correct or properly maintained, and this is the subject-matter of the second point mentioned supra. Besides, the total increase made in the gross turnover is Rs. 15,495. If the total declared turnover of Rs. 16,18,505 is taken, the increase is less than 1 per cent., if the balance of the turnover after deducting the value of tax-paid goods and radios sold is taken which is Rs. 5,87,985, the increase works out to about 3 per cent. The increase of even 3 per cent. cannot be said to be arbitrary in the circumstances of this case. Therefore, it is held that the enhancement in the gross turnover was properly made." 4.. It will be seen that the Sales Tax Authorities did not refer to any statutory provision under which the order of e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Simply because the enhancement made was only 1 per cent. on the gross turnover disclosed by the dealer and there was likelihood of errors or omissions in the accounts, the enhancement cannot be justified in the absence of any material or circumstance to support it. The Tribunal observed that it was a notorious fact that there are large number of unlicensed radios and there can be concealment of sales of radios. But there can be no presumption that the dealer indulged in sale of unlicensed radios for a criminal practice cannot be attributed to the dealer in the absence of any evidence to show that the dealer followed such practice: Lalchand Bhagat Ambica Ram v. Commissioner of Income-tax[1959] 37 I.T.R. 288 (S.C.). There was no material refe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2044/1885/ V.S.T. dated 8th August, 1962, to which the question makes a reference reads as follows: "In exercise of the powers conferred by section 12 of the Madhya Pradesh General Sales Tax Act, 1958 (No. 2 of 1959), the State Government hereby exempts in part, the class of goods mentioned in column (1) of the schedule below from the payment of tax so as to reduce it to the rate of tax mentioned in column (2) thereof for the period specified in column (3) and subject to the restrictions and conditions specified in column (4) of the said schedule. Schedule Class of goods. Reduced rate. Period. Restrictions and conditions subject to which exemption is granted. 1 2 3 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d gave the dealer the benefit of concessional rate of tax in respect of sales covered by the certificates. 8.. The argument of the learned Government Advocate for the department is that to get the benefit of the concessional rate the dealer must produce the certificates before the assessing authority and the certificates cannot be filed in appeal. He was, however, unable to show any provision in the Act or the Rules which lays down that the certificates must be produced before the assessing authority. Reference was made by him to rule 20. But that rule does not refer to the certificates prescribed by the notification under consideration. In the absence of any provision that the certificates can be filed only before the assessing authority ..... X X X X Extracts X X X X X X X X Extracts X X X X
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