Section 19B turnover estimation needs proof of actual excess collection; market-price comparison alone is insufficient.

Section 19B of the Kerala General Sales Tax Act requires proof that the assessee actually collected consideration higher than the amount disclosed in the accounts before the assessing authority can reject the book value and estimate turnover on a market-value basis. Mere comparison with jaggery prices charged by other dealers, or reliance on enquiries about market rates, was insufficient because the orders did not record a factual finding of excess collection by the assessee. The Tribunal's approach, insisting on evidence of actual higher receipt before invoking section 19B, was upheld and the departmental challenge failed.

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Issues: Whether the estimating authority could invoke section 19B to adopt the market value of jaggery for the assessee's turnover without a finding that the assessee had actually collected more than the amount disclosed in the accounts.

Analysis: For sustaining an assessment based on section 19B, it was necessary for the Revenue to establish that the assessee had factually received consideration higher than the ostensible amount shown in the books. The assessment and first appellate orders proceeded on enquiries and comparison with other dealers' prices, but they did not record a finding that the assessee had in fact collected excess consideration. The Tribunal correctly applied the governing principle that mere market comparison, without proof of actual extra collection, does not justify rejection of the book value and estimation on that basis.

Conclusion: The invocation of section 19B was not justified on the facts, and the Tribunal's direction to accept the value shown in the accounts was upheld.

Final Conclusion: The revision failed, and the departmental challenge to the Tribunal's order did not succeed.

Ratio Decidendi: An assessment under section 19B of the Kerala General Sales Tax Act, 1963 requires a finding that the assessee actually collected more than the consideration disclosed in the accounts; without such proof, estimation based only on market price or comparison with other dealers is unsustainable.

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