VADAYATTU JEWELLERY Vs. STATE OF KERALA

JUDGEMENT

(1.) THE assessee-petitioner is doing business in gold and silver ornaments in the style of M/s. Vadayattu Jewellery at Palai. For the assessment year 1985-86, the petitioner filed a return showing a total and taxable turnover of Rs. 8,99,815. 26. THE assessing authority for the purpose of completing the assessment called for the accounts in support of the return and verified the same. THEreafter he issued a pre-assessment notice proposing to reject the return and accounts on the following grounds : " 1. No manufacturing accounts maintained. 2 No cooly paid voucher produced for the manufacturing work done. 3 No amount paid as cooly as per account. This is unbelievable. 4 G. S. 11 and G. S. 13 produced for verification. 5 No purchase bill kept for old silver purchase. 6 No stock register kept for silver. 7 As per account produced the opening stock of stones Rs. 6,100 and tools Rs. 550. No purchase effected during the year. Sales of stones Rs. 939 and tools Rs. 400 were accounted. Closing balance is noted as stones Rs. 6,200 and tools Rs. 300. From the above it is clear that the dealer is not keeping true and correct accounts of his transactions, as contemplated in the K. G. S. T. Act. It is therefore proposed to reject the books of accounts and to estimate the turnover for 1985-86 to the best of my judgment as under. "

(2.) THE assessee filed a reply explaining the items of defects pointed out in the pre-assessment notice. THE reply was to the following effect : " (1) THE accounts are correct and complete and has to be accepted. In the nature of their business the manufacturing accounts are G. S. 11 and G. S. 12 and they are maintaining that. THE assessees stated that they had produced them for verification. Those registers are kept as per Central Excise Acts and Rules. G. S. 13 is the register kept by goldsmith. (2) Regarding cooly payment the assessee contended that they are paying piece rate remuneration to the smith and payment is entered in the day book. It is not cooly. (3) For the purchase of old silver ornaments they are entering the same in the day book and no stock register or purchase bill kept for silver. Regarding the closing stock of stones and tools the assessee contended that it does not make a reason for rejecting the accounts. "

(3.) THE assessee took up the matter before the Kerala Sales Tax Appellate Tribunal, Additional Bench, Kottayam. THE Appellate Tribunal referred to the defects pointed out by the assessing authority and without making any discussion in the matter simply confirmed the rejection of the accounts. Regarding the estimation of turnover also, the Tribunal has simply stated that when all the defects pointed out are taken together, it is clear that the accounts are not free from defects, that the Appellate Assistant Commissioner had considered the gravity of the defects and reduced the addition to 25 per cent from 50 per cent and that the said addition sustained by the appellate authority cannot be said to be high or arbitrary. Accordingly, the appeal was dismissed.