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of <h1>High Court upholds tax, penalty, and interest on unrecorded sales in inter-state trade for assessment year 2000-2001.</h1> The High Court upheld the levy of tax, penalty, and interest on unrecorded sales during inter-state trade by the petitioner firm for the assessment year ... Levy of tax and penalty - Non-issuance of bill from the regular bill book for sale of Kota stone - Inter-state trade and commerce - Held that:- the assessing authority has rightly found that the said bills were not issued from the regular bill book of the petitioner firm and the petitioner firm had duplicate bill book as it could not get the aforesaid bills verified to have been issued from the regular bill books. Bill No.71 was issued from the original bill book of the petitioner firm, thus it is clear that bill no.71 was issued from duplicate bill book and thus petitioner firm has escaped that transactions from assessment. The petitioner firm was also provided full opportunity of hearing before levy of tax and imposition of penalty but it failed to prove that the the bills were issued from regular bill book. The Deputy Commissioner (Appeal) has already reduced the amount of excess interest. The Rajasthan Tax Board has rightly maintained the levy of tax, penalty and interest on the alleged inter-state transactions. - Decided against the petitioner Issues: Assessment of petitioner firm for assessment year 2000-2001, levy of tax, penalty, and interest on unrecorded sales during inter-state trade and commerce.Assessment of petitioner firm:The assessing authority finalized the assessment for the petitioner firm for the assessment year 2000-2001, noting discrepancies in the bills issued by the firm for inter-state trade and commerce. The authority found that certain bills, including Bill No.7 dated 06.09.2000 and Bill No.296 dated 18.02.2001, were not accounted for in the assessment, leading to the imposition of Central Sales Tax (C.S.T.) at a rate of 12% plus S.C. Additionally, a penalty and interest were levied on the petitioner for non-payment of the assessed tax amount.Appeals and Dismissals:The petitioner, dissatisfied with the levy of tax, penalty, and interest, filed an appeal before the Deputy Commissioner (Appeals) in Kota, which partially accepted the appeal by reducing the interest amount but upheld the tax and penalty. Subsequently, a Second Appeal No.1565/2007/Kota was filed before the Tax Board for Rajasthan, Ajmer, which was dismissed in a judgment dated 18.12.2008. This dismissal prompted the filing of a writ petition challenging the decisions.Judicial Analysis:Upon review, the High Court found that the Rajasthan Tax Board rightfully dismissed the petitioner's second appeal. The court observed that the petitioner had not issued bills from the regular bill book for the sale of Kota stone during inter-state trade, leading to the unrecorded sales being treated as taxable transactions. The assessing officer correctly imposed tax, penalty, and interest based on the available bills and bilty related to the transactions. It was noted that the bills in question were not issued from the regular bill book of the petitioner firm, indicating a discrepancy in the recording of sales.Verification and Opportunity:The court highlighted that the petitioner firm had the opportunity to provide evidence and explanations regarding the bill issuances but failed to prove that the bills were from the regular bill book. Despite being provided with a hearing, the petitioner could not establish the authenticity of the transactions in question. The court acknowledged that the Deputy Commissioner (Appeal) had already reduced the excess interest amount, indicating a partial relief provided during the appeal process.Final Decision:In conclusion, the High Court found no errors or deficiencies in the orders issued by the lower authorities. The court upheld the levy of tax, penalty, and interest on the alleged inter-state transactions, dismissing the sales tax revision due to lack of merit. The judgment affirmed the imposition of taxes based on the available evidence and the failure of the petitioner to demonstrate compliance with the tax regulations.
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