RAJAN JEWELLERY AND DIAMONDS INDIA PVT. LTD Vs. INSPECTING ASSISTANT COMMISSIONER, COMMERCIAL TAXES, PATHANAMTHITTA

JUDGEMENT

(1.) The petitioner, who is a registered dealer under the Kerala Value Added Tax Act (hereinafter referred to as the 'KVAT Act'), is aggrieved by Ext.P8 order passed under Section 25 (1) of the KVAT Act for the assessment year 2013-2014 confirming demand of tax and interest to an extent of Rs. 1,36,42,740/-. The petitioner points out that, while passing Ext.P8 order, the assessing authority took note of the fact that the petitioner, who had been doing business in the assessment year 2013-2014, filed returns only up to February 2014, and although his registration was cancelled with effect from October 2014, for the period between March 2014 and October 2014, the petitioner had not filed any returns as required under the KVAT Act. In the pre-assessment notice issued to the petitioner, reliance was placed on the figures in the audited balance sheet and profit and loss account of the petitioner, to find that the total sales as per the profit and loss account was in an amount of Rs. 21,62,44,467/- of which the total sales up to February 2014 was in an amount of Rs. 16,00,52,872/- and the sales for March 2014 was in an amount of Rs. 5,61,91,595/-. Thereafter, it was pointed out that a closing stock of Rs. 16,15,28,705/- was also noticed and this was proposed to be assessed in the assessment year 2013- 2014 itself, by adding a gross profit of 10% thereto, on the assumption that the goods representing the closing stock had been sold. Despite the fact that the petitioner submitted a detailed reply to the said proposal objecting to the same, the said proposal was confirmed by the Assessing Officer in Ext.P8 order.

(2.) I have heard the learned counsel appearing for the petitioner and also the learned Government Pleader appearing for the respondent.