STATE OF ORISSA Vs. RANITAL RICE MILL

JUDGEMENT

(1.) ON a motion being made by the Revenue, the Orissa Sales Tax Tribunal, Cuttack (in short, "the Tribunal") has referred the following question for opinion of this Court :

(2.) FOR the assessment year 1984-85 M/s. Ranital Rice Mill (hereinafter referred to as "the assessee") was assessed to tax under section 12 (4) of the Orissa Sales Tax Act, 1947 (in short, "the Act") and an extra demand of Rs. 2,14,305 was raised under the the Act and Rs. 1,391 under the Orissa Additional Sales Tax Rules, 1975 (in short "the Rules" ). The demand was raised on the ground of discrepancy in the stock of broken rice. By working out the quantum of paddy required in order to obtain 103. 48 quintals of broken rice, suppression was inferred, and in turnover enhancement of Rs. 65,89,000 was made. Assessing officer estimated the sale of the unaccounted for broken rice estimated at Rs. 20,600 and the sale of taxable bran and bran sold as cattle feed at Rs. 1,85,400 and Rs. 50,000 respectively. The purchase turnover of paddy was estimated at Rs. 28,84,000 on the basis of prevailing market price. By taking the prevailing market price the estimated sale price was fixed at Rs. 33,99,000 though the basis of quantification of suppressed turnover amounting to Rs. 65,89,000 has not been indicated in the order. In appeal the Assistant Commissioner maintained the enhancement. It was held that there was reasonable nexus for making the enhancement. In further appeal the Tribunal held that the conclusions were presumptuous so far as they relate to estimation of suppression. The Tribunal found that the cost of 103. 48 quintals of broken rice was to be valued at Rs. 15,000 on the basis of market value. Adopting that to be the figure on which the enhancement has to be worked out the suppressed turnover was fixed at Rs. 6 lakhs. The observations of the Tribunal in this regard are as follows :

(3.) WHAT would be the quantum of enhancement does not in all cases involve a question of law. Where there is absolutely no material to support the conclusion, a question of law arises. But where the Tribunal after dealing with relevant aspects fixes up the enhancement at a particular figure, it is a conclusion on facts, giving rise to no question of law. In the case at hand, the Tribunal having analysed the facts situation, as quoted above, and having fixed a figure of enhancement at Rs. 6 lakhs, on consideration of the analysis we are of the view that no question of law arises out of the order of the Tribunal. Accordingly, we decline to answer the question referred to this Court for opinion. The reference application is disposed of. No costs. Application disposed of accordingly.