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TMI Blog2009 (7) TMI 1175X X X X Extracts X X X X X X X X Extracts X X X X ..... d on the consumption of electricity energy. We are therefore convinced that the remittal order passed by the Appellate Assistant Commissioner was well justified and the Tribunal ought not to have interfered with the same. Therefore, while setting aside the order or the Tribunal, we restore the order of the Appellate Assistant Commissioner dated February 17, 1995 and remand the matter back to the file of the assessing authority for carrying out re-examination, as directed by the Appellate Assistant Commissioner, in the said order. Inasmuch as the assessment relates to the year 1992-93, we only direct the assessing authority to carry out the exercise of re-examination expeditiously, preferably within a period of three months from the date of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to have received from its own agricultural lands for drying purpose. In respect of the said claim, a certificate from the village administrative officer, Singampuneri South was also obtained and produced by the assessee. There was a common electricity connection and common consumer card, both in respect of the assessee-mill as well as its sisters concern called Jothi Muthiah Sons. The said consumption card revealed a total consumption of 52361 units between April 1992 and December 1992. A sample survey was conducted as to the consumption of electricity vis-a-vis production of oil, oil cakes for crushing 320 kgs of groundnut kernel. In the said survey, it was found that it required consumption of 13 units of electricity for crushing 320 kg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion. The Appellate Assistant Commissioner also considered the contention of the assessee that consumption of energy for decorticating groundnut, for coolie as well as crushing for the mill, would have far exceeded 40 per cent of the total consumption if the correct particulars had been taken into account and held that on that aspect also, re-examination was called for. One other reason which weighed with the Appellate Assistant Commissioner was that the assessing officer estimated the suppression of groundnut kernel at Rs. 1,14,32,850 and the resultant oil and oil cakes at Rs. 74,31,350 and 17,98,768, respectively, but in that process, the estimation on produce of raw materials was shown at a higher value and the selling price of the result ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned senior counsel for the respondent-assessee. The learned Special Government Pleader appearing for the petitioner placed reliance on the decision reported in Shanmuga Oil Mills v. Commissioner of Commercial Taxes in Karnataka [1993] 91 STC 100 (Karn) and Kalyani Oil Mills v. State of Madras [1973] 32 STC 542 (Mad). While the former was a decision rendered by the Division Bench of the Karnataka High Court, the latter is by our High Court. In both the decisions, the estimation, based on energy consumed, has been held to be one of the methods, which can be validly adopted by the assessing authority in the event of any serious discrepancy found out in the material particulars submitted by the assessee in its return. In the decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... based on consumption of electricity energy. However, as pointed out by the Appellate Assistant Commissioner, while making such an estimation, certain vital factors, relating to the crushing of oil and decortication carried out by the assessee on coolie basis were not properly considered. In other words, the assessing authority adopted a rough and ready method of providing 40 per cent of consumption of electricity energy for other activities and straightaway took 60 per cent of such consumption for crushing of oil and oil cakes. In fact, the assessee was using power not only for crushing purpose alone but was also using such power for decortication, both for its own purpose as well as on coolie basis for others. The said factors were not ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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