9911796707
TMI Blog1999 (2) TMI 649X X X X Extracts X X X X X X X X Extracts X X X X ..... f the said gross receipt, Rs. 9,64,287.50 was received as conversion charges and that the said amount of conversion charges consisted of Rs. 3,31,622.50 as received from M/s. Jaiswal Steel Industries and Rs. 6,32,665 as from Steel and Hardware Stores, of 23A, Netaji Subhas Road, Calcutta. During the assessment, the Commercial Tax Officer (hereinafter referred to as, "the CTO") while allowed receipt of Rs. 3,31,622.50 as conversion charge, disallowed the balance amount on the ground that M/s. Steel Hardware Stores was, on local verification, found non-existent at the given address. The applicant alleges that the C.T.O. rejected books of accounts and treated the said transaction of alleged conversion work as sale suppression. Fixing the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is found non-existent at the declared place of business several years after the actual conversion job, it (the firm) cannot be faulted for that and cannot be penalised by disbelieving its claim relating to conversion job. The applicant prays for a declaration that Rs. 6,32,665 is the genuine receipt as conversion charges and is not liable to be taxed and that the impugned orders of the respondent Nos. 1, 2 and 3 are illegal. 3.. The respondents in their affidavit-in-opposition have disputed the applicant's claim as regards a sum of Rs. 6,32,665 on the ground that M/s. Steel Hardware Stores from whom the applicant claims to have received the said sum as conversion charge never existed at the given address at the material time or even at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... who gave the raw materials for conversion against conversion charges. There can be no third possibility nor has the applicant claimed any such third possibility. Admittedly, certain quantity of finished products was taken out in the name of M/s. Steel Hardware Stores (hereinafter referred to as "the store"). Now, if it is found that the store is a fictitious concern having no existence in reality at the relevant time the story of giving raw materials by such concern to the applicant-firm for the purpose of converting the same into such finished product against conversion charges will definitely fall through. In such event, the inescapable conclusions are that such products as were taken out in the name of the store were nothing but the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fter such a long lapse of time the applicant is not supposed to keep proofs, besides the challans of the store for despatch of raw materials and that the applicant is under no obligation to keep the dealer, i.e., the store, at the given address for verification of the transaction. Even the petition before us and the grounds for revision (enclosed with the application) do not go beyond this plea. Therefore, the plea of lack of opportunity is of little significance. The applicantfirm could not have improved its case. It is beyond comprehension how a concern having transaction of lakhs of rupees with a single party (the applicant), having activities of purchase of raw materials worth huge sums and ultimate sale transactions in respect of finis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with Mr. Mukhopadhyay that the alleged payment of such considerable sums of money in cash is unusual in the context of the present day commercial practice as well as safety and security. Payment of such big sums of money in cash may arise on exceptional circumstances but the story of alleged payment of the entire amount of Rs. 6,32,665 in cash weakens the credibility of the firm's story in the absence of any special circumstance. It is not the applicant's case that with other parties too it had all transaction in cash by such big sums of money. Mr. Mukhopadhyay contends that had there been a genuine dealer named M/s. Steel Hardware Stores payment should have been made in cheques and that might justify the genuine existence of a concern w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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