ANSAR TRADERS Vs. COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) Raising a short question whether the account books of a dealer engaged in the manufacture and sale of exempted items can be rejected under Section 12(2) of the U. P. Sales Tax Act, 1948 (for short "the Act, 1948"), this revision is filed by the dealer for the assessment year 1978-79 against the Tribunal's order dated 24th April, 1986.

(2.) The assessee engaged in the business of manufacture and sale of wooden carving goods purchases timber against form 31 from outside the province and after having done the carving he manufactures several items for sale. Admittedly no manufacturing account has been maintained by the assessee, but he maintained the other accounts, namely, rokar, khata, ledger, purchase and sale register, form register, cash book, etc. No survey was conducted during this year on the assessee's premises.

(3.) The assessing officer, however, rejected the book version of the assessee and enhanced the total turnover. He however accepted the sales effected within the State of U. P. The assessing officer held that the concealed sales of timber and sokhta had been made by the assessee. The best judgment assessment was made after having rejected the book version on the ground that no manufacturing account as envisaged by Section 12(2), was maintained by the assessee. The rejection of the books for this reason was sustained by the Tribunal as well.