K.K. MARBLES Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THESE tax revision cases have been filed against the orders of the Sales Tax Appellate Tribunal, Main Bench, Chennai, in T.A. Nos. 348 of 1997, 349 of 1997 and 350 of 1997 dated September 11, 1998. The assessment relates to the years 1992 -93, 1993 -94 and 1994 -95. Based on records secured during inspection on August 5, 1994, the assessing authority resorted to the best judgment assessment by adding equal time addition and levying penalty at 150 per cent of tax. The orders passed for the three years were dismissed in the first appeal stage. In the second appeal the Appellate Tribunal sustained actual suppression and levied penalty at 50 per cent of the tax due for the assessment year 1992 -93 and for the years 1993 -94 and 1994 -95. The Appellate Tribunal held that the quantum of penalty will be with reference to the slab falling under Section 12(3)(b) of the Tamil Nadu General Sales Tax Act, 1959. Hence the present revision.

(2.) MR . A. Thiagarajan, the learned counsel for the petitioner, contended that the assessee did only labour work and even at the time of inspection he has stated that he was doing labour work for others and though affidavits were filed before the Appellate Tribunal, the Appellate Tribunal failed to apply Regulation 12 of the Tamil Nadu Sales Tax Appellate Tribunal Regulations, 1959, in considering the affidavit. Therefore, the orders of the Appellate Tribunal are erroneous in law and need interference.

(3.) APPARENTLY , we find that the Appellate Tribunal on appreciation of facts has held that the records secured during inspection clearly established suppressions as rightly held by the Appellate Assistant Commissioner. As regards additional affidavit filed under Regulation 12 of the Tamil Nadu Sales Tax Appellate Tribunal Regulations, 1959, the Appellate Tribunal observed that the assessee did not file all these materials before the Appellate Assistant Commissioner. Only in September 1997, the affidavits obtained from Tvl. Govindarajulu, Vairammal and V.S. Rajagopalan were filed and therefore, there is merit in the contention of the State Representative that the affidavit filed is only an afterthought and therefore they are not acceptable. The Appellate Tribunal has categorically held that the appellants failed to discharge their initial onus to let in satisfactory evidence to prove that the transactions are not sales. Thus we find that the conclusions reached by the Appellate Tribunal are on appreciation of facts and there is no case of non -application of mind in passing order while considering the additional affidavits filed under Regulation 12 of the Tamil Nadu Sales Tax Appellate Tribunal Regulations, 1959. As regards penalty the quantum was reduced to the statutory minimum for 1992 -93 and the penalty levied for the years 1993 -94 and 1994 -95 is in accordance with the slab specified under Section 12(3)(b) of the Act. Thus we find that no error of law is involved in any of the tax revision cases and in such circumstances they are dismissed in the admission stage itself.