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TMI Blog2003 (1) TMI 685X X X X Extracts X X X X X X X X Extracts X X X X ..... s return filed under the Kerala General Sales Tax Act, 1963 for the year 1991-92, disclosed a total and exempted turnover of Rs. 45,97,875.75 and the taxable turnover was returned as nil. There were two inspections of the business premises of the assessee on October 25, 1991 and November 12, 1991. In the first inspection a shortage of 2 litres of arrack was found and the offence was compounded on payment of Rs. 500. In the second inspection a shortage of 0.180 litre of arrack was found and the offence was compounded on payment of a sum of Rs. 5,000. The inspecting authority also noted that the assessee has not maintained the books of accounts or stock register. No sale bills were also seen issued. Apart from the above, the assessing authori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8.14. The Government Pleader also relied on the decision of the division Bench of this Court in K.C. Sunil Kumar v. State of Kerala (1994) 2 KTR 32 where according to him on similar facts the division Bench upheld the estimate made by the assessing authority on the basis of the price variation in the sale of arrack. The Government Pleader also submits that though another division Bench of this Court in Lovely Thomas v. State of Kerala [1999] 113 STC 505 has held that when an excess stock is found on inspection it is for the authorities to establish the source from where the unaccounted purchase was made and that no addition could be made only for the reason that the books of accounts were not found to be fully posted at the time of the insp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uvalla after paying sales tax, that the assessee had returned a total and exempted turnover of Rs. 45,97,875.75 which would show that the sale value per litre conceded by the assessee works out to Rs. 309.62, that in the inspection conducted by the Inspecting Assistant Commi sioner, Manjeri and by the Intelligence Officer, Squad No. I, Malappuram only shortage of two liters of arrack in the first inspection and 0.180 litre of arrack in the second inspection were found and that the assessee had compounded the offence on both the occasions for Rs. 500 and Rs. 5,000 respectively. It is relevant here to note that in both the inspections the Inspecting Officers could not find any excess stock nor did they find any material like kuruppu, etc., re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a. He accordingly disclosed a purchase of 14,850 litres (valuing Rs. 2,38,638.14) and disclosed a sale of Rs. 45,97,875.75. The assessing authority observed that the dealer had sold the entire stock for Rs. 45,97,875.75. The assessing authority did not believe this position presumed unaccounted purchases of arrack. Thereafter the assessing authority estimated the sale of 14,850 litres of arrack at Rs. 13,36,500 and gave exemption only for the estimated sales. The first appellate authority enhanced the estimated value to Rs. 18,56,250 (14,850 litres for Rs. 125) and thereby the exemption. The dealer submitted before us that he had not effected any purchase other than those accounted in the books of accounts and that there cannot be any e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have not established a single instance of suppression of purchase of arrack from within the State. The sale and purchase of arrack are also subject to restrictions under Abkari Act and the purchase and sales are referable to excise records. However, herein, the sales tax authorities have not come across materials in those records to come to a conclusion of effecting purchases which are taxable at sale point under the Kerala General Sales Tax Act. The authorities have also not come across unaccounted 'purchases'. The assessing authority had also not observed or stated that the dealer had sold quantities of liquor more than the accounted purchases. The results of inspections, that shortages alone were found affirms the position that dealer ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hould have been sold and that it is on that basis the accounts of the dealer were rejected and the taxable turnover was determined. The division Bench further observed that this is largely a finding of fact based on appreciation of the available materials in the case and there is no error of law in the order of the Appellate Tribunal. 6.. In the present case the discussion of the matter by the Tribunal in the portion extracted above would show that the Tribunal has considered all the relevant matters and has arrived at a finding of fact that there are no grounds to estimate the taxable turnover in any manner whatsoever. According to us, the findings of fact arrived at by the Tribunal in the appellate order are based on materials available ..... X X X X Extracts X X X X X X X X Extracts X X X X
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