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TMI Blog1987 (9) TMI 391X X X X Extracts X X X X X X X X Extracts X X X X ..... e the province and after having done the carving he manufactures several items for sale. Admittedly no manufacturing account has been maintained by the assessee, but he maintained the other accounts, namely, rokar, khata, ledger, purchase and sale register, form register, cash book, etc. No survey was conducted during this year on the assessee's premises. The assessing officer, however, rejected the book version of the assessee and enhanced the total turnover. He however accepted the sales effected within the State of U.P. The assessing officer held that the concealed sales of timber and sokhta had been made by the assessee. The best judgment assessment was made after having rejected the book version on the ground that no manufacturing acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o maintain the manufacturing account under sub-section (2) of section 12, as he is not liable to pay tax. The question is whether the assessee who is a manufacturer-dealer is liable to pay tax. It is not denied that wood carving items manufactured by the assessee are exempted from tax and that being so, the assessee cannot be said to be liable to pay tax within the meaning of sub-section (2) of section 12 of the Act, 1948. When he is not liable to pay tax on the exempted items, will he be required to maintain a manufacturing account? I quite agree with the assessee that he not being liable to pay tax on the items which he manufactures and sells, is not required to maintain account under sub-section (2). If he is found to be a dealer in timb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , but the assessee cannot be asked to maintain the manufacturing account, maintenance of which is not required under the law just to facilitate the investigation of the department. Moreover, the contention of the learned Standing Counsel does not appear to be sound, inasmuch as under sub-section (1) of section 12 every dealer including a dealer exempted from tax under any provision of the Act shall keep and maintain a true and correct account of the goods sold and bought. If the assessing officer feels that the assessee is a dealer in timber then he may call upon the assessee to furnish the accounts of sale and purchase under sub-section (1) of section 12 and if he fails to maintain the same then the book version can be rejected. But the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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