KODOOR ENGINEERING (P) LTD Vs. STATE OF KERALA

JUDGEMENT

(1.) THE assessee - M/s. Kodoor Engineers (P) Ltd. - has approached this Court in these three tax revision cases for the assessment years 1987 -88, 1988 -89 and 1989 -90 respectively.

(2.) FOR the year 1987 -88 he reported total and taxable turnover of Rs. 49,84,738. 78 and Rs. 48,42,896.85 respectively. For the year 1988 -89 it was Rs. 45,16,060.48 and Rs. 42,11,506.33 respectively. For the assessment year 1989 -90, however, it was Rs. 57,48,588.52 and Rs. 53,98,687 respectively. In all these three proceedings the accounts were rejected and the taxable turnover was estimated. In the same order the estimated taxable turnover is Rs. 53,69,410, Rs. 44,57,010 and Rs. 56,92,220. It would further be seen that in all these three proceedings in the same manner the addition would be Rs. 5,26,514, Rs. 2,45,500 and Rs. 2,93,530 in the same order. The proceedings give the splitting up with regard to these additions with reference to two sources, viz., suppression of sales in manufactured polythene pipes and taxable turnover under section 5A of the Act. In all these proceedings the assessing authority determined percentages of additions; illustratively for the year 1987 -88 it was 10 per cent for the years 1988 -89 and 1989 -90 it was 5 per cent and with regard to the taxable turnover under section 5A of the Act, it is 60 per cent throughout all the sales turnover added back.

(3.) THE learned counsel has taken us through the three orders. It is to be stated that the Kerala Sales Tax Appellate Tribunal, Additional Bench, Ernakulam delivered a common order dated September 28, 1993. The learned counsel appearing for the assessee in all the three revision cases, in vain tried to urge that there are no standard specifications of raw materials required for the production of polythene pipes and in regard thereto the assessing authority practically rejected the books of accounts maintained by the assessee by referring to the approximate requirement furnished by none other than the assessee himself. The learned counsel strenuously urged that even consumption of raw materials would not form material enough to reject the books of accounts. We are afraid that acting under the powers under section 41(1) of the Kerala General Sales Tax Act, 1963, it would not be possible to reopen everything especially in the context of facts and circumstances stated hereinabove. Even with regard to the fixation of the addition, the assessing officer has been more than considerate. The percentage of addition also affords satisfaction that the assessing authority has used judicial discretion in regard thereto. On the other aspect of fixation of addition in terms of percentage, it was really more than difficult for the learned counsel to urge justifiably in the context of limited powers under section 41(1) of the Kerala General Sales Tax Act, 1963. However, the learned counsel would have to be understood as more than justified in the context of levy of turnover tax, espedaily in regard to its levy with reference to the amount of tax collected. The learned counsel invited our attention to the following question No. 4 in the context : -