DEPUTY COMMISSIONER C T ENFORCEMENT Vs. KUMAR TRADERS

JUDGEMENT

(1.) THIS tax revision case is against the order of the Sales Tax Appellate Tribunal (Additional Bench), Coimbatore, in C.T.A. No. 18 of 1988 dated February 14, 1990.

(2.) The assessment relates to the year 1982 -83. The respondent/ assessee was originally assessed by the Deputy Commercial Tax Officer, Perundurai on a total and taxable turnover of Rs. 1,95,782 and Rs. 63,904 respectively for the year 1982 -83. On May 11, 1987, based on the recovery of certain slips during inspection on July 6, 1983, the Deputy Commercial Tax Officer, Enforcement -V, Erode, resorted to revision under Section 16(1) of the Tamil Nadu General Sales Tax Act, 1959. Relying on slip No. 3, the total purchase suppression was arrived at Rs. 5,91,425 for the period from March 2, 1983 to March 31, 1983. Adding 10 per cent gross profit, the actual sales suppression was arrived at Rs. 6,50,568. Adding three times for probable omission, the escaped turnover was fixed at Rs. 26,02,272. While referring to the objection, the assessing authority observed that the assessee has not come with proof to show that the purchases did not materialise and therefore, the transactions have to be construed as purchase omissions. He further stated that only the market price has been adopted so as to arrive at the value with reference to the quantities noted in the slip. Penalty was also levied under Section 16(2) of the Tamil Nadu General Sales Tax Act, 1959 to the extent of Rs. 48,792 for wilful suppression to the extent of Rs. 6,50,568.

(3.) IN the first appeal, the Appellate Assistant Commissioner, among others, observed that the assessee claimed that the entries in the slip related to orders placed on Ahmedabad sellers from February 21, 1983 to March 31, 1983 whereas the letter from the sellers says that their business was closed from February 15, 1983. Therefore, the Appellate Assistant Commissioner remarked that no one will go on by placing orders with a defunct firm. On that basis, the Appellate Assistant Commissioner sustained the suppression to the extent of Rs. 26,02,272 and distributed the same at rates taxable at various rates. The quantum of penalty was reduced to 100 per cent and the amount of penalty was fixed at Rs. 32,528.