C M SAHADEVAN Vs. STATE OF KERALA

JUDGEMENT

(1.) THE petitioner is a registered dealer under the Kerala General Sales Tax Act, 1963. THE petitioner is carrying on business in Indian-made foreign liquor. During the assessment year 1981-82 the petitioner had purchased Indian-made foreign liquor from local dealers as well as from outside the State. According to the petitioner, he is not liable to pay sales tax in respect of purchases made from local dealers since Indian-made foreign liquor is taxable at single point, at the point of first sale in the State of Kerala. His liability is confined to the sales turnover relating to the goods purchased from outside the State.

(2.) FOR the assessment year 1981-82 the petitioner submitted an annual return showing the total and taxable turnover as Rs. 23,01,420 and Rs. 86,000, respectively. The Sales Tax Officer by order dated February 22, 1984 fixed the total and taxable turnover at Rs. 23,66,043. 70 and Rs. 1,50,620 respectively. The taxable turnover was estimated at Rs. 1,50,620 as against Rs. 86,000 submitted by the petitioner, by rejecting the accounts and making an estimated addition of 10 per cent for probable omission and also by estimating a gross profit of 40 per cent on the value of goods sold. On appeal the Appellate Assistant Commissioner by order dated February 12, 1985 om S. T. A. No. 707 of 1984 deleted the addition of 10 per cent for probable omission as well as the estimate of 40 per cent gross profit. The order confined the addition to 10 per cent of the taxable turnover declared by the petitioner, viz. , Rs. 86,000 and consequently the taxable turnover was reduced to Rs. 94,600 from Rs. 1,50,620. On appeal by the Revenue before the Appellate Tribunal, the Tribunal allowed the appeal and set aside the order of the Appellate Assistant Commissioner and restored the assessment order of the Sales Tax Officer. The tax revision case has raised, inter alia, the question whether the Appellate Tribunal was justified in reversing the findings of the Appellate Assistant Commissioner on the facts of the case.