1994 (12) TMI 315 - HC - VAT and Sales Tax

High Court affirms Tribunal's decision on sales turnover & penalties for assessment years 1981-82 and 1982-83

T. Singaravelu Versus State of Tamil Nadu

T. Singaravelu Versus State of Tamil Nadu - [1996] 103 STC 543 (Mad) Issues:Assessment of taxable turnover for the years 1981-82 and 1982-83, imposition of penalty under section 12(3) of the Tamil Nadu General Sales Tax Act, appeal process before the Appellate Assistant Commissioner and the Appellate Tribunal, contention regarding suppression of sales turnover, estimation of turnover by the assessing authority, modification of turnover and penalty by the Tribunal, final decision on the revisions filed by the assessee.Analysis:The judgment pertains to revisions filed by an assessee regarding the assessment years 1981-82 and 1982-83. For the year 1981-82, the assessing officer determined the taxable turnover based on records secured during an inspection, leading to a reassessment due to an escaped turnover. The Appellate Tribunal later reduced the escaped turnover and the penalty imposed. Similarly, for 1982-83, the assessing officer determined a higher turnover and imposed a penalty, which was later reduced by the Appellate Tribunal based on the actual suppression turnover. The assessee challenged these assessments and penalties through the appeal process.The main argument presented by the assessee was that there was no positive evidence to establish actual suppression, questioning the levy of penalty under section 12(3) of the Act. The counsel contended that the penalty amount was excessive. On the other hand, the Additional Government Pleader argued that since the sales turnover was suppressed, the estimation and penalty were justified. The department relied on materials recovered during an inspection by the Enforcement Wing, stating the absence of account books from the assessee to counter the estimates.The High Court observed that there was indeed suppression of sales turnover for both years based on materials from the inspection. The assessing authority estimated the turnover, leading to the imposition of penalties. However, the Tribunal found that the suppression was sustained based on specific entries and modified the turnovers and penalties accordingly. The Court agreed with the Tribunal's reasoning, finding the modifications reasonable and declined to interfere with the Tribunal's decision. Consequently, the Court dismissed the revisions filed by the assessee, upholding the Tribunal's modifications to the turnovers and penalties for both assessment years under consideration.