Books of account and export pass fee in turnover: factual findings protected from revisional interference

Revisional interference was unwarranted where the Tribunal found no defect in the dealer's books of account and no suppression of turnover; on the facts, rejection of the accounts and enhancement of turnover were not justified. Export pass fee paid for obtaining an export permit was also held outside turnover because the dealer did not realise it from customers and was not itself liable to pay the fee under the Excise law. The revisional court therefore declined to disturb the factual findings or the exclusion of the fee from turnover, leaving the assessee's relief intact.

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Issues: (i) Whether the rejection of the books of account and enhancement of turnover was justified. (ii) Whether export pass fee was liable to be included in the dealer's turnover.

Issue (i): Whether the rejection of the books of account and enhancement of turnover was justified.

Analysis: The dealer was a manufacturer maintaining complete manufacturing and sales accounts. The rejection of books was founded mainly on non-filing of monthly returns, absence of separate accounts of local and outside-State purchases, and an alleged shortage loss in sheera. The lower appellate authority accepted the explanation that separate purchase accounts were not necessary in the facts of a manufacturing unit, and the shortage claim was supported by the excise authority's certificate. The Tribunal recorded that no defect was established in the books and there was no suppression. Such a finding was treated as a finding of fact.

Conclusion: The rejection of the books of account and enhancement of turnover was not justified, and the finding was against the Revenue.

Issue (ii): Whether export pass fee was liable to be included in the dealer's turnover.

Analysis: Export pass fee was payable by the exporter for obtaining the export permit. The dealer had neither realised that amount from customers nor was it liable to pay the fee under the Excise law. In that situation, the amount could not be treated as part of the dealer's turnover. The appellate authority and the Tribunal had therefore rightly deleted the addition.

Conclusion: Export pass fee was not includible in the dealer's turnover, and the finding was in favour of the Assessee.

Final Conclusion: The revisional court declined to interfere with the Tribunal's factual findings and the exclusion of export pass fee from turnover, leaving the assessee's relief intact.

Ratio Decidendi: In revisional proceedings, findings of fact regarding absence of defects in accounts and non-includibility of a third-party statutory fee in turnover will not be interfered with unless they disclose a legal error.

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