JOSEPH MATHEW AND BROTHERS Vs. STATE OF KERALA

JUDGEMENT

(1.) THESE four connected revision petitions have been filed by the same assessee and they arise out of assessments to sales tax made against the assessee -firm for the years 1972 -73 to 1975 -76 (inclusive). T. R. C. No. 191 of 1979 relates to the assessment year 1972 -73. T. R. C. No. 189 of 1979 relates to the assessment year 1973 -74. T. R. C. Nos. 190 and 192 of 1979 pertain to the assessment years 1974 -75 and 1975 -76 respectively.

(2.) FOR the assessment years 1972 -73 and 1973 -74 the assessments had been originally completed determining the taxable turnover at Rs. 34,062.12 and Rs. 70,587.32 respectively. Subsequently the assessing authority reopened the assessments for these two years in purported exercise of its powers under Section 19 of the Kerala General Sales Tax Act (for short "the Act"), on the basis that certain transactions amounting to Rs. 6,94,560 and Rs. 13,03,760 respectively had escaped assessment in respect of those two years. The reopening of the assessments was made only on the basis of certain entries said to be contained in the books of account of M/s. Peirce Leslie India Ltd. Though the assessee had requested for an opportunity to cross -examine the representative of M/s. Peirce Leslie India Ltd., the assessing authority refused to comply with the said request and completed the reassessment proceedings. On appeals filed by the assessee before the concerned Appellate Assistant Commissioner of Sales Tax, the reassessment orders were set aside and the matters were remanded to the assessing authority for fresh disposal for affording an opportunity to the assessee to cross -examine the representative of M/s. Peirce Leslie India Ltd. After the remand, one Shri R. V. Narasimhan, Assistant Manager of M/s. Peirce Leslie India Ltd., was examined before the assessing authority and his evidence regarding the nature of the transactions between M/s. Peirce Leslie India Ltd. and the assessee -firm and a statement of accounts extracted from the books of the company were also brought on record.

(3.) THE assessing authority overruled the aforesaid contentions put forward by the assessee relying on the statement of accounts given by M/s. Peirce Leslie India Ltd. and also on certain entries contained in the books of account of the Mundakayam Service Co -operative Bank, as well as on a resolution dated 5th April, 1975, of the Mundakayam Service Co -operative Bank. Relying upon the aforesaid materials and on the further fact that the delivery note issued by the company showed that the goods had been consigned to the assessee, the assessing authority held that the case was governed by the dictum laid down by this Court in Deputy Commissioner of Agricultural Income Tax and Sales Tax v. Alwaye Agencies, [1974] 34 STC 467 since, in the opinion of the assessing authority, the facts were exactly similar. The assessing authority accordingly held that there had been a transfer of property in the goods from M/s. Peirce Leslie India Ltd. to the assessee and the subsequent supply of the goods in question by the assessee to the co -operative societies and estate owners were by way of sale. The reassessment proceedings for the years 1972 -73 and 1973 -74 were completed by the addition of Rs. 6,94,558.95 and Rs. 13,03,760 respectively for 1972 -73 and 1973 -74 as escaped turnover and subjecting the same to tax.