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TMI Blog2001 (3) TMI 990X X X X Extracts X X X X X X X X Extracts X X X X ..... n the said year. The assessee had bid in auction the right to conduct business in arrack in shop Nos. 118 to 132 of Group No. 1 of the Kunnamangalam Range for an amount of Rs. 22,00,500. The privilege price which was so fixed in respect of the shops in question for the year 1993-94 turned out in sharp enhancement of the rental obtained for the previous year, viz., Rs. 6,61,500. According to the assessee, the assessee was not given registration under the Kerala General Sales Tax Act and the Central Sales Tax Act. The application in form No. 21 was also submitted seeking to come within the compounding system under which dealers were permitted to pay tax at a fixed rate of 20 per cent of base rental amount. Because, the registration was not gi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uthority boosted up the turnover of the appellant from Rs. 3,58,632 to Rs. 1,10,02,500. Considering the quantum of suppression detected as a result of the abovesaid inspections, the estimation of sales turnover as 5 times of the rental amount made by the reasonable nexus to the materials on record". It is against the above order that both the State and the assessee preferred appeals before the Tribunal. The Tribunal dismissed both the appeals. So far as the appeal filed by the assessee is concerned, the Tribunal held that the estimate of turnover retained by the Appellate Assistant Commissioner is neither excessive nor arbitrary. Therefore, the Tribunal confirmed the order passed by the Appellate Assistant Commissioner. 5.. Learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y per cent of the rental amount payable by him under the Abkari Act 1 of 1077 for the licence, less tax paid by him for the purchase of arrack on the first sale point." According to us, if the department wishes to fix the turnover on the basis of the rental, it can be done only on the basis of section 7(14) of the Act. It cannot just fix the turnover on the basis of multiplying the rental. According to us, the rental cannot give a clear indication of the turnover in the light of the fact that the rental is not fixed on the basis that particular quantity of arrack will be supplied, as required by the assessee. Hence, if the department is going to resort to the estimation on the basis of rental, it should be based on the conditions laid dow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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