9911796707
TMI Blog1993 (3) TMI 322X X X X Extracts X X X X X X X X Extracts X X X X ..... es of ex-U.P. angle iron. Admittedly, chaffcutters were totally exempt item during the year. The disclosed turnover was not accepted by the Sales Tax Officer and he estimated the taxable turnover at Rs. 90,000 which included a turnover of Rs. 8,000 of sale of imported hardware, Rs. 22,000 as sales of iron scrap and Rs. 60,000 as sales of angle iron. Feeling aggrieved by the assessment order the assessee appealed to the Assistant Commissioner (Judicial) who gave a partial relief inasmuch as he reduced the sale of iron scraps to Rs. 15,000 and deleted the entire addition on account of sale of angle iron assessed by the Sales Tax Officer. The Revenue preferred a second appeal against the appellate order. Initially, the Tribunal while allowing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... particularly the manufacturing accounts and thus, the disclosed turnover was liable to be rejected. Further having regard to the purchases of chaff-cutter machines which were to the extent of Rs. 1,93,000 the angle iron worth Rs. 1,34,187 shown to have been utilised in manufacture of stand was most improbable. It may be observed at this stage that the first appellate authority had deleted the disputed turnover on the finding that the Sales Tax Officer himself had accepted in the assessment order that the entire purchases of angle iron was utilised in manufacture of stand. The Tribunal found as a fact that this observation of the appellate authority was based on misreading of the assessment order and the assessee was not entitled to the reli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar does not exceed five lakh rupees, the Commissioner of Sales Tax may relax the requirements of this sub-section subject to such conditions and restrictions as he may deem fit to specify. (3) The accounts and the stock books required to be maintained under subsection (1) or sub-section (2) shall be preserved by the dealer or, as the case may be, by the manufacturer for such period as may be prescribed." It may be noticed that in case of manufacturer sub-section (2) of section 12 enjoins upon the dealer to maintain stock books in respect of the raw material as well as the products obtained at every stage of production in addition to the accounts required to be maintained as referred to in sub-section (1) of that section. The Sales Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the business of manufacture and sale of wooden carving and for that purpose it purchased timber. The sale of wooden carving goods were exempt from tax the assessee had maintained no manufacturing account as in the instant case and its account books were rejected and certain additions were made on best judgment. The assessment was upheld by the Sales Tax Tribunal. Construing the provisions of section 12(1) of the Act, the court held that a dealer engaged in manufacture and sale of exempted goods is not required to maintain accounts under sub-section (2) of section 12 and his account books cannot be rejected for that account. In view of the decision of this Court with which I am bound sitting singly, the impugned order of the Sales Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad sold some part of the angle iron and did not utilise the entire iron purchased for manufacture of stands as claimed by it. On the other hand, the learned counsel for the assessee contended that in the past the assessee was never assessed on any turnover of angle iron and there was no material available to the tax authorities for the finding that a part of the iron angle was sold as such. I do not feel it necessary to enter into this controversy for essentially it is a question of fact which could appropriately be determined by the fact-finding authority constituted under the Act. As the Tribunal has not addressed itself on these aspects of the matter, there is no option except to set aside the order of the Tribunal to the limited extent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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