9911796707
TMI Blog2016 (7) TMI 787X X X X Extracts X X X X X X X X Extracts X X X X ..... business of the assessee on 16.8.1999 and prepared a shop inspection report. During inspection notice was issued for production of books of accounts for the assessment year 1999-2000 for verification. This was not complied with by the assessee stating that they were maintaining accounts on computer and that print outs are prepared during their periodical audit purpose on a half yearly basis. On that basis, the assessee expressed their inability to produce their books of accounts. 3. Subsequently the regular books of accounts were called for and on inspection of the books of accounts that were produced, variation in stock was found. On the basis of the above finding, the intelligence officer concluded that as the assessee had failed to prod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and deducting the entire sales. 5. Finding that the said order passed by the First Revisional Authority was prejudicial to the revenue, the Commissioner of Commercial Taxes invoked his power under Section 37 of the KGST Act. Accordingly, the assessee was heard and Annexure-C order was passed setting aside Annexure-B order and directing the intelligence officer to pass fresh orders after affording the assessee a reasonable opportunity of hearing. In this order, the Commissioner held thus: "I have considered the grounds raised by the dealer and examined the records of the case. At the time of inspection, the dealer could produce only the purchase bills and sales invoices. Their explanation is that though accounts are maintained in the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eader contended that when it is the responsibility of the dealer to maintain proper and accurate books of accounts and in a case where such books of accounts are not available, an offence is made out attracting the penalty under Section 45A. Therefore, according to the learned Government Pleader, the Commissioner of Commercial Taxes was fully justified in setting aside Annexure-B order. She has also submitted that in pursuance to Annexure-C order passed by the Commissioner and after affording an opportunity to the assessee, the order dated 3.2.2005 has been passed imposing penalty on the assessee. 10. We have considered the submissions made by them. Section 37 of the KGST Act, conferring the power of suo motu revision on the commissioner, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellate Authority has set aside the order passed by the intelligence officer and the reason thereof is that the intelligence officer has levied penalty on the basis of a wild estimation. According to us, this reasoning of the intelligence officer is totally erroneous. A reading of Annexure-A order passed by the Intelligence Officer would show that on the basis of the documents made available by the assessee himself, the intelligence officer has recorded the quantity purchased, quantity sold and the balance. Thereafter on the basis of his inspection, the intelligence officer has quantified the stock available. Accordingly, the difference in the quantity shown as balance in the accounts of the assessee and the quantity found on verification ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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