DESH VIJAY HOSIERY FACTORY Vs. STATE OF PUNJAB

JUDGEMENT

(1.) IN pursuance of order dated July 30, 1996, passed by this Court in S.T.C. No. 28 of 1994, filed by the applicant under Section 22(2) of the Punjab General Sales Tax Act, 1948 (for brevity, "the Act") the Sales Tax Tribunal, Punjab, Chandigarh (for brevity, "the Tribunal") has referred the following question of law for adjudication of this Court:

(2.) THE brief facts of the case as discernible from the reference order dated October 14, 1996 passed by the Tribunal, are that the case of the applicant -dealer, who is a registered dealer under the sales tax laws deals in hosiery goods, in respect of assessment year 1982 -83 was taken up for assessment and the assessment proceedings were commenced on October 11, 1984. It is alleged that the dealer wilfully sought adjournments on 59 occasions from October 29, 1984 to February 20, 1987. Later on the case was transferred to the Assessing Authority, Ludhiana -II, who also granted various opportunities to the dealer from August 5, 1987 to February 23, 1988. On October 28, 1982, a surprise inspection was conducted at the business premises of the dealer and some documents were impounded for verification by the Assessing Authority. The dealer failed to produce the account books despite availing of opportunities. A notice was given for making addition of Rs. 2,00,000 on account of suppressed sales. Ultimately, an addition of Rs. 2,00,000 was made to the declared turnover of Rs. 6,45,098.19 and an additional demand of Rs. 24,557 was raised including a penalty of Rs. 10,000 under Section 10(7) of the Act, vide order dated February 23, 1988, passed by the Assessing Authority, Ludhiana -III.

(3.) DURING scrutiny of order dated January 18, 1989 passed by the Assessing Authority, the Assistant Excise and Taxation Commissioner, Ludhiana -III, exercising the powers of the Commissioner, found that the addition due to surprise inspection has been wrongly waived. Accordingly, the revisional authority initiated suo motu revision proceedings to revise the assessment order.