2010 (2) TMI 1080 - HC - VAT and Sales Tax

High Court affirms Tribunal decision on tax case, upholding penalty under section 12(3)(b)

The High Court upheld the Tamil Nadu Sales Tax Appellate Tribunal's decision in a tax case, dismissing the revision filed by the assessee. The Tribunal's ... Whether the order of the Tribunal is illegal, without basis and the Tribunal has erred in sustaining the alleged estimated turnover on the ground that the purchase bills were raised much after the date of delivery challans? Held that:- The Tribunal has considered all the facts and circumstances of the case and rendered a factual finding. It is a question of fact. It is not a perverse order. The counsel for the assessee is also unable to bring any fresh materials and convince before us to take a contrary view of the Tribunal. We do not find any illegality or irregularity in the order passed by the Tribunal. Tax case revision is dismissed Issues Involved:Suppression of turnover, Alleged estimated turnover, Levying penalty under section 12(3)(b) of the Act.Suppression of Turnover:The case involves an appeal against the order of the Tamil Nadu Sales Tax Appellate Tribunal regarding the suppression of turnover by the assessee. The assessing officer had determined the total and taxable turnover differently from what was reported by the assessee, along with levying a penalty. The Tribunal confirmed the suppression and penalty in respect of a specific turnover amount. The Tribunal's decision was based on the inspection findings, where discrepancies were noted in the accounts and stock maintenance of the assessee. The Tribunal considered the explanation provided by the assessee regarding the delayed raising of purchase bills after delivery challans but found it unacceptable. The Tribunal concluded that the actual sales suppression amount does not warrant interference. The High Court, after examining the Tribunal's detailed reasoning and factual findings, upheld the order, stating that it was not illegal or irregular.Alleged Estimated Turnover:The assessee contended that the Tribunal's order was illegal and without basis, particularly challenging the alleged estimated turnover upheld by the Tribunal. The assessee argued that there was no suppression of turnover, as goods were received through delivery challans and not concealed. The Tribunal, however, based its decision on the inspection revealing discrepancies in stock maintenance and accounts, leading to the confirmation of the estimated turnover. The High Court analyzed the arguments presented by both parties and found that the Tribunal had considered all relevant facts and circumstances before making its decision. The Court concluded that the Tribunal's findings were based on material facts and in accordance with the law, hence confirming the order.Levying Penalty under Section 12(3)(b) of the Act:One of the issues raised was the imposition of a penalty under section 12(3)(b) of the Tamil Nadu General Sales Tax Act. The assessee challenged the penalty levied by the Tribunal, arguing against its imposition. The Tribunal, after considering the inspection findings and discrepancies in stock maintenance, confirmed the penalty in relation to the specific turnover amount. The High Court, upon reviewing the arguments put forth by both sides and the Tribunal's reasoning, upheld the penalty imposition, stating that the Tribunal's decision was based on factual findings and did not exhibit any illegality or irregularity.In conclusion, the High Court dismissed the tax case revision filed by the assessee, upholding the Tribunal's order regarding the suppression of turnover, the alleged estimated turnover, and the penalty imposed under section 12(3)(b) of the Act.