1996 (10) TMI 469

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..... oceedings the accounts were rejected and the taxable turnover was estimated. In the same order the estimated taxable turnover is Rs. 53,69,410, Rs. 44,57,010 and Rs. 56,92,220. It would further be seen that in all these three proceedings in the same manner the addition would be Rs. 5,26,514, Rs. 2,45,500 and Rs. 2,93,530 in the same order. The proceedings give the splitting up with regard to these additions with reference to two sources, viz., suppression of sales in manufactured polythene pipes and taxable turnover under section 5A of the Act. 3.. In all these proceedings the assessing authority determined percentages of additions; illustratively for the year 1987-88 it was 10 per cent for the years 1988-89 and 1989-90 it was 5 per cent .....

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..... ing authority practically rejected the books of accounts maintained by the assessee by referring to the approximate requirement furnished by none other than the assessee himself. The learned counsel strenuously urged that even consumption of raw materials would not form material enough to reject the books of accounts. We are afraid that acting under the powers under section 41(1) of the Kerala General Sales Tax Act, 1963, it would not be possible to reopen everything especially in the context of facts and circumstances stated hereinabove. Even with regard to the fixation of the addition, the assessing officer has been more than considerate. The percentage of addition also affords satisfaction that the assessing authority has used judicial d .....

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..... n it, no turnover tax is payable. What is excluded is the entire turnover which is subjected to sales tax and not only a part of it which is taxable. The conclusion is that there can be no need at all for expressly excluding sales tax from the turnover for the purpose of turnover tax because by the very scheme of section 5(2A) when sales tax forms part of turnover, that turnover cannot be subjected to turnover tax. The learned counsel further brought to our notice the decision of this Court (to which one of us-myself was a partner dictating the judgment) dated September 26, 1996 in T.R.C. No. 29 of 1994 taking the same view relying thereupon. 8.. In this view of the situation the only modification that would be required would be in the na .....

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