DEPUTY COMMISSIONER OF SALES TAX LAW BOARD OF REVENUE TAXES ERNAKULAM Vs. KURIAN JOSEPH AND P J STEPHEN

JUDGEMENT

(1.) AGGRIEVED with the finding of the Kerala General Sales Tax Appellate Tribunal, Trivandrum, whereby the Tribunal concurred with the findings of the first appellate authority - the Appellate Assistant Commissioner that no addition is called for in respect of the shortages in stock of Indian-made foreign liquor and arrack detected at the time of inspection, the Revenue has approached this Court under section 41 of the Kerala General Sales Tax Act. The Tribunal, however, considered non-availability of books of account in the business place at Pathanamthitta at the time of inspection on August 22, 1985 and non-availability of the purchase bills also together with non-availability of daily kurippu on September 12, 1985 at Kozhencherry imposed a token addition of Rs. 10,000 as sufficient to cover the said solitary defect.

(2.) THE only question for consideration is as regards the concurrent position taken by the two appellate authorities that no addition is called for in respect of the shortage in stock of Indian-made foreign liquor and arrack detected at the time of inspection.

(3.) APART from reproducing the above reasoning of the first appellate authority the Tribunal independently itself considered the position and found that only when shortage in stock of Indian-made foreign liquor and arrack have been detected no addition is called for. The Tribunal has noted in this connection that at Pathanamthitta the inspection of the business premises took place on August 22, 1985 revealing shortage of 1,435 litres of arrack. The Tribunal has also considered the other irregularities showing flimsy character of shortage by referring to the fact that 2,500 empty bottles and 500 caps were not supported by purchase bills. The Tribunal has also in addition emphasized that with regard to this situation of offence so compounded for a sum of Rs. 250 the Tribunal has been more particular to note that in the process of compounding this value of shortage. has not at all been considered which is a factor to show the nature of the shortage. Similarly with regard to the inspection on September 12, 1995 of the business place at Kozhencherry shortage of 7 bottles of brandy was the result, and the offence was departmentally compounded for Rs. 115. With regard to the inspection of January 25, 1985 ar Ranni the shortage also was departmentally compounded for Rs. 1,000. The Tribunal has emphasized that from the entire situation shortage in stock of Indian-made foreign liquor and arrack only have been detected and the entire sales turnover considered by the assessee have been allowed for exemption as second sales.