KALANAURIA TRADING CO. Vs. STATE OF ORISSA

JUDGEMENT

(1.) In the captioned revision the petitioner assails the order dated 23.12.2008 passed by the Orissa Sales Tax Tribunal in Second Appeal Nos. 817 and 736 of 1999-2000, whereby dismissed the appeal filed by the petitioner and allowed the appeal in part filed by the State.

(2.) The factual matrix leading to the case of the petitioner is that the petitioner is a dealer in grocery articles at Sambalpur under CircleSambalpur. He deals with edible oil, ghee, sugar, rice, peas etc. on wholesale basis. It is alleged inter alia that the learned Assessing Authority got the establishment of the petitioner assessed for the year 1995-96. The I.S.T. (Intelligence Wing) of Sambalpur made visit to the establishment of the petitioner and found the stock of the materials goods with reference to the book of accounts of the dealer were not in order. Similarly another visit was made by the Intelligence Sales Tax Circle on 13.9.1995 and found 40 quintals of rice was carried from Gosala by the petitioner without any document. As the books of accounts, stock register and physical verification do not tally each other showing some items excess and deficit of some items, the learned Assessing Authority computed the gross turn over at Rs.3,91,92,861.35 paise. After making deduction under different heads the taxable turn over became Rs.1,93,64,867.11 paise. So the Assessing Authority after discussion found total amount of Rs.77,527.50 paise has to be paid by the petitioner as tax after deducting the tax already paid by the petitioner under Rule-36 of the O.S.T. Rules.

(3.) The petitioner challenged the order of the learned Assessing Authority before the First Appellate Authority.The learned First Appellate Authority observed that the calculation of the Assessing Authority about suppression of the amount for 26 times is excessive and contrary to the decision of the Court. When he found that the enhancement of turn over by 26 times of alleged suppression of Rs.47,805/- is excessive, he limited the enhancement of turnover to Rs.7,64,881/- of which Rs.6,64,881/- is added to the 4% tax rate of group, Rs.1,00,000/- is added to the 8% tax rate group of the taxable turn over. On the whole he allowed the appeal in part and assessed the tax demand by reducing the same by Rs.61,302/- only.