9911796707
TMI Blog2003 (2) TMI 471X X X X Extracts X X X X X X X X Extracts X X X X ..... .. The brief facts noticed are as under: The appellant herein, M/s Sri Rama Oil Company, Giddalur, Prakasham district (hereinafter referred to as the assessee ), are the manufacturers of groundnut oil and cake. On February 11, 1984, the Commercial Tax Officer (Intelligence), Nellore, inspected the mill and found variations in the stocks. The assessee had paid both tax and compounding fees. Subsequently, verification as to the particulars of the electricity consumption indicated an additional turnover. The Commercial Tax Officer (Intelligence) found the same was not brought to tax and the assessing authority included the said variation in the assessment for the year 1983-1984 and a further turnover relating to certain purchases was also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be taken seriously in the matter. 4.. In so far as the second aspect is concerned, i.e., turnover on account of variation in the consumption of electricity and the tax based on variations, the appellate authority said that the mill and machinery is of more than 25 years old and it cannot be compared with the modern and sophisticated mill, and as such, it is difficult to come to the conclusion as to the yield of oil, etc, on the basis of consumption of power by the mill. Reliance was also placed on a decision of the division Bench of the Kerala High Court in St. Teresa's Oil Mills v. State of Kerala [1970] 25 STC 497 wherein it was held that it is not safe to rely upon the variations in the consumption of the electricity, which is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in addition to the tax. On a perusal of the record by this Court, it was found that the inspection had taken place on February 11, 1984. The petitioner has not raised any objection at the earliest point of time, and he improved the case after two or three years, when he has filed an appeal before the appellate authority. The variation of stocks is a pure question of fact and the petitioner had admitted the same and paid the compounding fees in addition to the tax, and as such, it does not lie in the mouth of the appellant to say that he had paid the tax and compounding fees under coercion. Thus, we consider that it is not open for this Court to interfere into the factual findings of the Commissioner of Commercial Taxes in the order of revis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me standards taken into consideration by the department but the age of the machinery was not denied and no test check was conducted. We notice that, even the department had not suggested any alternative figure taking into consideration the age of the plant and machinery. 9.. In this regard, the appellant placed reliance on a reported judgment of this Court in N. Raja Pullaiah v. Deputy Commercial Tax Officer, Kurnool [1969] 24 STC 90 wherein the head note reads as under: The assessing authority rejected the account books of the assessee, an oil miller, and estimated the turnover on the basis of consumption of electricity and the result of tests conducted in other mills. No test, however, was conducted in the assessee's mill to fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nducted in other undertakings cannot be of much relevance for the purpose of these mills about which it cannot be said that they are similarly circumstanced in all respects. As the data relied upon by the assessing authorities, which is made the basis of best judgment assessment, thus smacks of arbitrariness, the best judgment of assessment is liable to be set aside . 11.. The Revenue relied upon a judgment in Madurai Soft Drinks Private Limited v. State of Tamil Nadu [1985] 60 STC 94 wherein the High Court of Madras, in the circumstances of that case held that: ......there has been actual test check in the assessees' own factory and it is not based on any arbitrary figure..............If the assessees had produced any acceptable ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
