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TMI Blog2015 (10) TMI 211X X X X Extracts X X X X X X X X Extracts X X X X ..... pugned order of the Tribunal. No question of law is involved in the order of the Tribunal - Decided against assessee. - Sales/Trade Tax Revision No. 406 of 2014 - - - Dated:- 3-7-2014 - SURYA PRAKASH KESARWANI, J. Suyash Agarwal for the applicant. Nimai Das, Standing Counsel and Chief Standing Counsel for the respondent. JUDGMENT Heard Sri Suyash Agarwal, learned counsel for the applicant and Sri Nimai Das, learned standing counsel for the respondent. Briefly states the facts of the case are that the applicant is engaged in the manufacture and sale of tobacco mixed pan masala. During the assessment year in question, i.e., 1998-99, certain discrepancies were found and on that basis the assessing authority issued a no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellate authority, the Commissioner, Trade Tax, preferred Second Appeal No. 175 of 2001 before the Member, Commercial Tax Tribunal, Bench-II, Agra. The Tribunal allowed the appeal and remanded the matter to the appellate authority for deciding the appeal afresh in the light of the observations made in the body of the order. In the impugned order, the Tribunal has referred and relied upon the judgment of this court in the case of Luxco Electronics, Johnstonganj, Allahabad v. Commissioner of Sales Tax, U. P., Lucknow [1981] 48 STC 540 (All); [1981] UPTC 36 and observed that non-maintenance of stock register renders the books of accounts to be rejected. Shri Suyash Agarwal submits that the impugned order of the Tribunal is wholly arbi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 12 aimed at preventing the dealer from suppressing or concealing the true position regarding the sale and production. The maintenance of manufacturing account is mandatory in terms of section 12(2) of the Act and the assessing authority would be well within its jurisdiction to reject the account books for the only reason that a manufacturing account had not been maintained in terms of those provisions. It was however pointed out that where the account books were rejected due to non-maintenance of manufacturing account, the disclosed turnover need not necessarily be rejected in absence of any other adverse material. The rejection of accounts and the assessment to best judgment are two separate and distinct processes, which ought not t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich the revisionist dealt where suppressed or understated or any concealment was found. No error of any kind was found in the sales effected by the revisionist-assessee. In absence of any other supporting material, there seems no justification in setting aside the order of the first appellate authority. The power of remand by an appellate authority can only be exercised in the ends of justice and not for an oblique purpose and for an excuse only with a view to provide a fresh innings to the Revenue. The discrepancy both in terms of the weight and value was so trivial that it was not worth taking notice of having regard to the magnitude of business and the quantum of taxable turnover, which were returned by the revisionist-assessee. Sri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not maintained, it leads to the conclusion that the account books are not reliable or that particulars are not properly verifiable. If the account books are rejected, the turnover has to be determined to the best of judgment of the assessing authority concerned. We are unable to uphold the view that a defect in non-maintenance of stock register is only technical and so the turnover disclosed in the account books should be accepted. On the facts of a particular case, it is for the assessing authority to consider along with other materials disclosed in the case, to what extent the account books can be relied on for determining the turnover. In normal circumstances, the rejection of account books calls for the estimation of the turnover to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... register at every stage of production. The learned Appellate Authority has not exercised any view regarding the acceptance or non-acceptance of the account books of the assessee and has accepted the turnover as disclosed by the assessee. The honourable Supreme Court in the case of Commissioner of Sales Tax, U. P., Lucknow v. Girja Shanker Awanish Kumar [1997] 104 STC 130 (SC) [1997] STI 1 (SC) has held that section 12(2) of the Act mandates the dealer to maintain stock books in respect of raw materials as well as finished goods at every stage of production and if such books are not maintained, it leads to the conclusion that account books are not reliable or that particulars are not properly verifiable. 'If the account books are rejecte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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