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TMI Blog2019 (4) TMI 526X X X X Extracts X X X X X X X X Extracts X X X X ..... p to which the revision petitioner, his wife and daughter are the partners, was conducting business in the inspected premises. For arriving such a conclusion, there is absolutely no materials available with the Assessing Authority. The reliance placed by the Appellate Authorities on the partnership deed and lease agreement produced by the appellant, will not in any manner help the Assessing Authority to confirm the assessment made in the name of the appellant. The assessments impugned in the Revision Petitions are not sustainable - appeal allowed - decided in favor of appellant. - O. T. Rev. (VAT) No. 56 And 58 of 2018 - - - Dated:- 19-3-2019 - MR C. K. ABDUL REHIM AND MR R. NARAYANA PISHARADI, JJ. For The Appellant : ADV. SR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. In other words, the question is whether an assessment under Section 25(1) can be sustained on the allegations constituting ingredients of Section 26 of the KVAT Act. 3. A brief narration of facts will be beneficial. The Intelligence Officer (IB), Commercial Taxes, Kasaragode conducted an inspection on 22.4.2009 in a premises where a unit manufacturing crackers was functioning, situated at Anakkal in Vorkady Panchayath. The Inspection Mahazar (Inspection note) prepared at the time of the search, copy of which is produced as Annexure-I, would indicate the following facts. At the time of inspection only the employees were present in the premises and they were not in a position to show any Registration Certificate or Explosive Licence. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lips, estimates, bill books etc. recovered, it was revealed that huge quantity of business transaction on the crackers manufactured in the unit has taken place. It is stated that the Intelligence Officer had recovered from the Panchayat Office, the copy of an affidavit which was filed by Sri. M.A Abdul Ashraf before this Court in connection with a writ petition. It was revealed that he had solemnly affirmed that he is not manufacturing any explosives in the unit after 25.04.2008. But the documents recovered from the premises revealed that manufacturing of crackers still continued in the unit. It is further stated that, on issuing summons to the above said five persons, they failed to produce any books of accounts. Hence, penalty was propose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sri.M.A Abdul Ashraf had stopped the manufacturing of crackers. The lease deed is pertaining to a building situated in a property comprised in Re-Sy.No.225/4A, which is adjacent to the unit of Sri.M.A Abdul Ashraf and Sri Narendra Patali, which according to the First Appellate Authority is in R.S No.225/4B. The First Appellate Authority found, without any basis, that the partnership deed and the lease deed produced by the revision petitioner and the documents recovered from the business place will prove beyond doubt that the revision petitioner and other partners were carrying on business in Re-Survey No.225/4A, which was run by Sri.M.A Abdul Ashraf. It is further found that the materials produced by the appellant are pertaining to the busi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o.270 B C in the property situated at Re-Sy.No. 225/4B. It is the admitted case of the Intelligence Officer, who conducted the search, that there were four sheds and in none of the sheds the building number was exhibited. Eventhough, it is evident that the bills, estimates and business slips were recovered, no details of those documents have been mentioned either in the order imposing penalty or in the orders of assessment. According to the authority, it was revealed from the records of the Panchayat that the unit was functioning in Re-Survery No.225/4A. But it is not mentioned about any Building Number of the business premises where in the partnership firm to which Sri. Abdul Ashraf and Sri. Narendra Patali were the partners. No referenc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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