COMMISSIONER SALES TAX Vs. SARAYA DISTILLERY

JUDGEMENT

(1.) This revision is directed against the order of Tribunal dated June 4, 1992 relating to the assessment year 1980-81.

(2.) Dealer-opposite party was carrying on the business of country liquor. Dealer claimed that during the year under consideration, dealer had not sold Indian-made foreign liquor and had only sold country liquor. Assessing authority however, rejected the books of account and estimated the turnover of Indian-made foreign liquor at Rs. 1 lakh. Dealer filed appeal before Deputy Commissioner (Appeals), which was allowed in part. First appellate authority had accepted the books of account and disclosed turnover. However, during the course of hearing of appeal, issued notice to the dealer to show cause why turnover of rectified spirit and denatured spirit are not liable to tax. After reply from the dealer, plea was accepted that being alcohol they were not liable to tax. Deputy Commissioner (Appeals) further held that during the year under consideration dealer has sold molassess spirit for Rs. 56,542 on which charged duty for Rs. 14,782.40. Deputy Commissioner (Appeals) was of the view that molasses spirit was not country spirit and accordingly levied tax at the rate of 25 per cent on estimated turnover at Rs. 71,325.08. Dealer filed appeal before Tribunal, which was allowed and the turnover of molasses spirit has been exempted treating it as country spirit. Being aggrieved by the order, present revision has been filed.

(3.) Heard Sri U.K. Pandey, learned Standing Counsel and Sri Bharat Ji Agrawal, learned Senior Advocate for the dealer/opposite party.