Taxable turnover cannot be enhanced to the full returned figure solely for missing cash memos where a lower estimate is supported.

Taxable turnover could not be raised to the full returned figure merely because cash memos were not produced where the materials supported a lower reasonable estimate and the Sales Tax Officer had already accepted a reduced taxable turnover. The controlling question was whether the dealer had transactions in tax-free goods and, if so, what their turnover was. On that basis, the higher authority's enhancement was not justified, and the assessment was required to be modified by restoring the lower estimate.

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Issues: Whether the taxable turnover could be enhanced to the full returned turnover merely because cash memos were not produced, and whether the assessment should be confined to the estimated taxable turnover accepted by the Sales Tax Officer.

Analysis: The petitioner was a petty dealer dealing in controlled goods in small lots. The authorities below rejected the claim relating to non-taxable goods chiefly on the ground that the cash memos required by Rule 36(1) were not produced. The assessment, however, showed that the Sales Tax Officer had estimated the taxable turnover at a lower figure and had not rejected the possibility of tax-free transactions. The higher authority increased the turnover to the full returned figure only for want of cash memos, without showing that the lower estimate was wrong. The Board held that the decisive question was whether there were transactions in tax-free goods and, if so, what their turnover was.

Conclusion: The enhancement to the full turnover was not justified. The assessment was directed to be modified by restoring the lower estimate made by the Sales Tax Officer, and the petition was partly allowed in favour of the assessee.

Final Conclusion: The assessee succeeded to the extent that the turnover was reduced to the lower estimated figure, while the remaining objections failed.

Ratio Decidendi: A claim to exemption for tax-free goods cannot be rejected solely for non-production of cash memos where the available materials support a lower reasonable estimate of taxable turnover.

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