G. AUTHITHAN Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THIS is an appeal filed at the instance of the assessee against the suo motu revision on the order of the Appellate Assistant Commissioner, Madras, against the assessment order made by the Deputy Commercial Tax Officer, Nilakottai.

(2.) THE assessee was assessed on a total and taxable turnover of Rs. 85,79,460 against the reported turnover of nil in respect of the assessment year 1992 -93 On the check of accounts, the assessing officer has found certain defects Based on the said defects and also the materials collected in D7 records during the search of the house of the dealer on February 22, 1993, the assessing officer rejected the accounts and resorted to best judgment assessment and determined the total and taxable turnover to Rs. 85,79,460 and levied penalty in a sum of Rs. 5,45,507 under section 12(3) of the TNGST Act. The assessee carried the matter on appeal to the first appellate authority, the Appellate Assistant Commissioner, who allowed the appeal on the ground that no purchase or sale bills were secured in the name of the assessee to establish that he was a dealer in coffee seeds. No confirmation statement was obtained from the appellant that he was a dealer or the records recovered related to him. Neither D7 records nor the account books marked as A and B contained the name of the appellant. Right through, the appellant disowned the records at the time of preparation of mahazar, obtaining deposition statement. It was not proved beyond doubt that the records were written by the appellant. The order of the Appellate Assistant Commissioner was examined by the Joint Commissioner, who formed an opinion that the order is not only erroneous but also prejudicial to the interest of the Revenue and invoked the suo motu revision and issued notice and after hearing the parties the Joint Commissioner set aside the order of the Appellate Assistant Commissioner and restored the order of the assessing officer. The correctness of the same is now canvassed before us.

(3.) THE place of business and the residence of the dealer, viz., the appellant was inspected and searched by the officers of the inspection wing. The Hooks marked A and B and 76 slips were recovered during the inspection and search. The bills and slips recovered contained the name and address of the dealers whose registration certificate numbers have been cancelled. The assessing officer has collected the required bills from the Central Excise Department and other authorities from which it is clear that the said dealers whose names were found in the document unearthed during the inspection were dealers of books nature and the registration certificates issued to them have been cancelled with effect from March 31, 1990, March 31, 1992 and March 31, 1986.