9911796707
TMI Blog1989 (6) TMI 270X X X X Extracts X X X X X X X X Extracts X X X X ..... was difference of 1,225 litres in the stock of vinegar. Certain documents were also seized during inspection. They included one used bill book and seven slips. The slips disclosed unaccounted purchase of 60,230 litres of arrack during the period April 1, 1985 to October 31, 1985. The inspection report also showed that no records (accounts?) were produced for verification. One stock register alone was produced, which was initialled by the officer. Proceedings were initiated for non-maintenance of true and correct accounts. The managing partner of the assessee-firm, who was present at the time of inspection, and had signed the shop inspection report, admitted the offence and prayed for compounding the same. An amount of Rs. 30,000 was levied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We heard the counsel for the revision petitioner (Revenue), as also the counsel for the respondent (assessee). We are not entering into the detailed merits of the case as we are of the view that the Appellate Tribunal has failed to deal with the appeal which was before it, in accordance with law. The Appellate Tribunal has not disposed of the appeal either fairly or reasonably. "It is trite law that even doing what is right may result in unfairness if it is done in the wrong way." (Swadeshi Cotton Mills v. Union of India [1981] 51 Comp Cas 210 (SC) at page 254; AIR 1981 SC 818 at page 844) . The order of the Appellate Tribunal discloses procedural unfairness. It is common ground that the business premises of the firm was surprised on Novem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Intelligence Officer on the date of compounding on March 24, 1986, were not produced before the assessing authority, (so recorded in the files produced) though the assessee stated that it was being produced. The lapses discernible from the above, as also the circumstances, which disclosed that the accounts and returns are incorrect and untrue, that the assessee has withheld production of records, which were admittedly with him (found during inspection and signed by the Intelligence Officer), were relied on to reject the accounts and the returns and to effect the best judgment assessment. In the first appeal, the above aspects were not individually considered, though reference has been made to most of them. The Appellate Assistant Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arily on the basis of the said fresh evidence. 3.. As stated, we are not adjudicating the merits of the case in detail, lest, it may prejudice either of the parties in further proceedings. The Sales Tax Officer has positively stated that the seven slips recovered from the business premises and returned to the assessee were never produced. As to why it was not produced before the assessing authority is anybody's guess. Initially it is for the assessing authority to evaluate the impact of the particulars contained in the slip. It is also seen that the sale bills and the daily stock register, which were available at the time of inspection and signed by the Intelligence Officer, were not produced before the assessing authority. Though no book ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gulation 48 of the Kerala Sales Tax Appellate Tribunal Regulations, 1966, to receive the original slips as additional evidence in the appeal. In the absence of a prayer or admission of the said slips as additional evidence in the appeal in accordance with the above regulations, the Appellate Tribunal was incompetent and unauthorised to peruse the slips, said to have been recovered and produced before it or to place reliance on them. The procedure adopted by the Appellate Tribunal in perusing the slips or in placing reliance on them, to conclude "that the assessing authority has not established unaccounted purchases " or that "the compounding proceedings were done in undue haste" or "without giving sufficient time to explain", etc., is gross ..... X X X X Extracts X X X X X X X X Extracts X X X X
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