JYOTHI ENTERPRISES Vs. STATE OF KERALA

JUDGEMENT

(1.) WITH regard to the assessment year 1987-88 in relation to the assessment to Kerala general sales tax the petitioner-assessee, Messrs. Jyothi Enterprises showed the total turnover at Rs. 26,209 claiming exemption in regard thereto of Rs. 22,274 showing taxable turnover of Rs. 3,935.

(2.) THE assessee, a partnership firm engaged in purchase and sale of LPG stove, purchasing them from the manufacturers, namely, Faridabad Gas Gadgets Limited on payment of tax at 4 per cent.

(3.) EVEN the first appellate authority - Additional Deputy Commissioner of Agricultural Income-tax and Sales Tax (Appeals) in the order dated August 28, 1990, has considered these aspects independently. It has also taken into consideration that if Sri Srinivasan is the son-in-law of one of the partners there has to be some material if the payment is considered as commission and not ex gratia payment. In fact the appellate authority has referred to the receipts issued by Srinivasan and Udayakumar showing that the amount received by them was towards commission account. The first appellate authority found the contents of the receipt in contradistinction with the plea of it being ex gratia payment. The first appellate authority has also considered the second aspect relating to an amount of Rs. 13,893 in a similar manner appreciating the importance of the mode of payment being by cheque in regard thereto.