9911796707
TMI Blog2006 (8) TMI 565X X X X Extracts X X X X X X X X Extracts X X X X ..... towards service charges and commission received and claimed exemption on the same on the ground that the same does not represent sales turnover of goods. The assessing officer in the course of assessment directed the petitioner to produce documentary evidence towards proof of nature of receipt claimed as commission and service charges. Even though the petitioner produced some letters of parties pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Pleader appearing for the respondent. The petitioner is admittedly dealing in ceramic products during the year and the petitioner accounted in addition to declared sales price, receipt of Rs. 45,80,168 from a sister concern M/s. Poseidon Food Company. Even though the petitioner put up a specific case that the receipt represents service charges and commission for arranging buyers, testing and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n dark about the financial transaction. In the absence of any proof, even at this stage, the only question to be considered is what is the consequence of an unexplained credit in a traders' account for the purpose of sales tax. We have to straightaway refer to section 12 of the KGST Act, which reads as follows: 12. Burden of proof. (1) The burden of proving that any transaction of a deal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, we uphold this addition as a necessary consequence of the petitioner's failure to explain the receipt in his account. In the circumstances, we are of the view that the first appellate authority thoroughly went wrong in casting burden on the assessing officer to establish the amount received by the petitioner as sales turnover of goods and so much so, the Tribunal rightly reversed the ord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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