9911796707
TMI Blog2019 (8) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... puted that certain amount of guess work is necessarily involved in such cases. Purchase of raw material - assessee would submit that the assessing officer had recorded categorical finding that no physical verification of stock was made at the time of survey and therefore, no adverse inference may be drawn thereon - HELD THAT:- It appears that that finding can never be read in isolation in face of Exhibit Nos.4, 5 and 6, as discussed above. Once the assessee was found to have manufactured and sold goods outside its books, the estimation of undisclosed purchase of raw material was a natural consequence of that finding. The fact that the central excise and state excise authorities may not have found or considered that material to be adverse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and vinyl acetate. These goods are manufactured from the raw material denatured spirit, specially de-natured spirit and rectified spirit. The ratio of the raw material utilized and the finished product is of about 740Kg : 1000 Kg. Further, the raw materials noted above are subject to payment of central excise duty and also, their transportation and handling are regulated under the State laws. It is clear that no discrepancy whatsoever was alleged or found with respect to maintenance of accounts, registers etc. both under the Central Excise Act as also the UP Excise Act. Therefore, the alleged discrepancy noted during the survey dated 21.12.2004 and 23.12.2004 conducted at the manufacturing and business premises of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed Commercial Tax Tribunal, Bench Noida was legally justified in estimating the turnover of suppressed purchases at ₹ 55 lakhs and that of suppressed sales of ₹ 25 lakhs merely on the basis of surmises and conjectures? 4. On the other hand, learned Standing Counsel would submit that bare perusal of Exhibit Nos.4, 5 and 6 seized during the survey, would reveal that those were complete used invoice, books and not few lose invoices. The assessee was thus found to have made sale inside UP of value ₹ 8,50,457/- and under the Central law of value ₹ 16,51,687/- outside its books. He would submit, once the sale invoices were not numbered and the same were found used in invoice books an inescapable conclusi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Insofar as the estimation of turnover is concerned, by way of first principle, it remains undisputed that certain amount of guess work is necessarily involved in such cases. This guess work was based on the undisclosed sales of ₹ 25,00,000/- discovered during the survey. In view of that clear evidence of undisclosed turnover of about ₹ 25,00,000/-, the Tribunal has made an addition of only ₹ 60,00,000/- which is a little more than two times of the material available with the revenue authorities. Therefore, that estimation is neither excessive nor arbitrary. Rather, it appears to be based on the material discovered during the survey. 6. As to the purchase of raw material, while learned counsel for the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
