T S METALS Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) BEING aggrieved by the order of Sales Tax Appellate Tribunal (STAT) in TMP.No,558/95 in TA.385/95, Assessee is before us. The petitioners had reported a total and taxable turnover of Rs.29,32,208/- claiming the entire turnover as exempt by way of second sales in the returns filed for the year 1992 - 93. During the course of inspection on 1.2.93, a stock variation of Rs.6,176/- was noticed. Besides 3 slips were recovered. The actual suppression was fixed at Rs.2,57,478/- and he made an equal addition towards probable omission and arrived at the estimated suppression of Rs.5,14,956/-. During the course of pendency of the above-said proceedings, the assessing authority had issued a revised notice on 8.11.93 pointing out that the petitioners had purchased goods from Kalaivani Metals of Madurai for Rs.4,36,344.80 and was of the view that no such dealer was in existence and consequently proposed to disallow the claim of exemption. The petitioners had filed their objections. The assessing authority confirmed the proposals stated in the show cause notice.

(2.) ON appeal, the Appellate Assistant Commissioner (AAC) had modified the order. As regards slip No.1, Appellate Assistant Commissioner had held that while the actual suppression of Rs.1,440/- was found to be in existence and duly admitted there are no grounds to estimate a further addition of 96 times. He sustained the suppression by way of slip No,2. As regards slip No,3, AAC relied on the various documentary evidence filed by the petitioners to conclude that a sum of Rs.1,00,000/- was only a loan. He had also deleted the stock discrepancy of Rs.6,176/-. As regards the alleged purchases from Kalaivani Metals, the Appellate Assistant Commissioner having regard to the various documentary evidence filed before him held that the Kalaivani Metals was only a existing dealer. Assessee went in appeal before STAT. In the appeal, Revenue filed the Enhancement Petition praying for restoration of order of Assessing Authority.

(3.) CHELLENGING order of STAT, Assessee has filed this revision. In this revision, the following substantial questions of law are raised for consideration:-