Mandatory production accounts justify rejection of books and estimated turnover where manufacturing records are not maintained.

A manufacturer must maintain daily production accounts with quantitative details of raw materials used and goods manufactured under Rule 32(15) of the Kerala General Sales Tax Rules, and that obligation is not merely directory. Because no manufacturing accounts were kept, the explanation for that omission was found unacceptable, and the books of account were rejected as unreliable. On those concurrent factual findings, estimation of turnover was justified, and no interference was warranted in revision with the percentage of addition sustained in the taxable turnover.

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Issues: Whether the books of account could be rejected and turnover estimated on the ground of non-maintenance of manufacturing accounts, and whether the Tribunal was justified in sustaining the addition made to the taxable turnover.

Analysis: The assessee's only relevant manufacturing activity was in furniture. The three authorities found that no manufacturing accounts were maintained and that the explanation offered for such non-maintenance was unacceptable. The Court held that Rule 32(15) of the Kerala General Sales Tax Rules requires a manufacturer to keep daily production accounts with quantitative details of raw materials used and goods manufactured, and this obligation could not be treated as merely directory. In the absence of such accounts, and in view of the concurrent factual findings that the accounts were unreliable and the explanation was unsatisfactory, the rejection of the books and the estimation of turnover were justified. The Court also held that no interference was warranted under section 41 of the Kerala General Sales Tax Act on the issue of percentage of addition.

Conclusion: The rejection of the accounts and the estimation of turnover were upheld, and the revision failed.

Ratio Decidendi: A manufacturer who fails to maintain the production accounts mandated by Rule 32(15) of the Kerala General Sales Tax Rules cannot insist on acceptance of the books of account, and concurrent findings sustaining rejection of accounts and estimated assessment will not be interfered with in revision.

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