STATE OF TAMIL NADU Vs. MAHARAJA READYMADE

JUDGEMENT

(1.) THE correctness of the order of the Sales Tax Appellate Tribunal dated 12.11.1998 made in MTA No,206 of 1997 is canvassed in this revision.

(2.) THE assessee, a dealer in the readymade garment reported a total and taxable turnover in a sum of Rs.14,87,719.45 and Rs.11,29,826/- respectively after claiming exemption on the turnover of Rs.3,57,893.45 in the return filed by the assessee for the assessment year 1994-95. Accounts were called for and checked. THE assessing officer found certain defects, such as gross profit working out to 36%, which he regarded as very high. No separate stock account for the taxable goods, i.e., readymade garment purchased from other states was maintained. Readymade goods purchased from Tvl.Asoka Dresses was not supported by bill or delivery note. In view of the above defects found, the accounts of the assessee were rejected as incomplete and incorrect and best judgment assessment was made and penalty was levied under section 12(3)(b)(i) of the Tamilnadu General Sales Tax Act, by the assessing officer. THE Appellate Assistant Commissioner dismissed the appeal filed by the assessee. As against that order, a further appeal has been filed before the Appellate Tribunal. Two points were raised, argued and adjudicated, before the Tribunal, and they are (1) Whether, the Appellate Assistant Commissioner's order is factually and legally sustainable? (2) Whether the penalty is sustainable?