Sales suppression evidence: statutory report under sales tax rules carries evidentiary weight when no concrete proof is found.

Rule 38(4) of the Kerala General Sales Tax Rules, 1963 requires a statutory report from the assessing authority after verification of records, documents and other evidence, and such a report carries due evidentiary weight when placed before the appellate authority in the prescribed manner. The assessee's non-Government status did not, by itself, reduce the value of its accounts. As the report itself recorded no concrete evidence of sales suppression and the appellate authorities relied on that report, no error of law was shown in the concurrent findings, and the revision was rejected as not raising any question of law.

---

---

Issues: Whether, in a revision under Section 41 of the Kerala General Sales Tax Act, 1963, the appellate authority and the Tribunal were justified in relying on the report obtained under Rule 38(4) of the Kerala General Sales Tax Rules, 1963 and in holding that there was no concrete evidence to substantiate sales suppression.

Analysis: Rule 38(4) contemplates a statutory report from the assessing authority after verification of records, documents and other evidence. Such a report is entitled to due credence when placed before the appellate authority in the manner prescribed by the rule. The fact that the assessee was not from the Government sector did not, by itself, affect the evidentiary value of its accounts. Since the report recorded that there was no concrete evidence of sales suppression and the appellate authorities acted upon that report, no error of law was shown in the concurrent decisions.

Conclusion: The revision was not maintainable on any question of law and was rightly rejected.

---