CEYENAR CHEMICALS PRIVATE LIMITED Vs. STATE OF KERALA

JUDGEMENT

(1.) The assessee has filed this appeal aggrieved by Annexure-C order passed by the Commissioner of Commercial Taxes, in exercise of his powers under Section 37 of the KGST Act.

(2.) The facts of the case are that the assessee is a dealer in chemicals. The Intelligence Officer, Squad No.3, Commercial Taxes, Kottayam inspected the place of 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 produce any documentary evidence regarding the opening stock of the goods, items of which are mentioned in the order, and the assessee being a running firm allowed 50% of the variation and the resultant variation was quantified. On that basis, the appellant's turn over was worked out and the tax effect was worked out at Rs.35,018/-. Thereafter, on the basis it was proved beyond doubt that the dealer had failed to maintain true and correct accounts of their business for the year 1999-2000 and also failed to produce regular books of accounts as provided under the KGST Act and the Rules made thereunder, it was proposed to levy penalty of Rs.80,036/-. The assessee submitted their reply and overruling the objections raised by the assessee, Annexure-A order was passed imposing a penalty of Rs.80,036/- for the offences of failure to maintain proper accounts and failure to keep true and correct accounts for the assessment year 1999-2000.