2013 (11) TMI 53 - HC - VAT and Sales Tax

High Court allows Tax Case Revision, setting aside Tribunal's order, restoring Commissioner's decision for assessment year 1993-1994.

The State of Tamilnadu represented by the Deputy Commissioner (CT) Versus Bhagavan Metals

The State of Tamilnadu represented by the Deputy Commissioner (CT) Versus Bhagavan Metals - [2012] 51 VST 41 (Mad) Issues:1. Assessment of total and taxable turnover for the assessment year 1993-1994.2. Levying penalty under Section 12(3) of the Tamil Nadu General Sales Tax Act, 1959.3. Denial of inter-state purchases by the assessee.4. Appeal before the Appellate Assistant Commissioner regarding stock variation and purchase suppression.5. Appeal before the Sales Tax Appellate Tribunal challenging the addition made based on actual suppression and probable omission.6. Inconsistencies in the stand taken by the assessee before different authorities.7. Tribunal's order lacking discussion and basis for canceling estimated additions.Analysis:The High Court of Madras dealt with a revision filed by the Revenue against the Sales Tax Appellate Tribunal's order concerning the assessment year 1993-1994. The case involved an inspection revealing deficit stock of S.S. Sheets at the appellants' business place. The Assessing Officer determined the total and taxable turnover, along with levying a penalty under Section 12(3) of the Tamil Nadu General Sales Tax Act, based on the inspection results. The assessee denied inter-state purchases during the assessment, leading to subsequent appeals (paragraphs 2-4).The Appellate Assistant Commissioner confirmed the assessment on actual suppression but sustained the addition made for probable omission. Subsequently, the assessee appealed before the Sales Tax Appellate Tribunal, arguing against the purchase suppression based on documents seized. The Tribunal, in a brief order, accepted the assessee's plea without substantial discussion, leading to the deletion of the equal addition made by the Appellate Assistant Commissioner (paragraphs 5-6).The High Court noted inconsistencies in the assessee's stand before different authorities and criticized the Tribunal's order for lacking a proper basis for canceling estimated additions. Despite generally respecting the Tribunal's findings, the High Court intervened due to the lack of reasoning in the Tribunal's decision. Consequently, the High Court allowed the Tax Case Revision, setting aside the Tribunal's order and restoring the Appellate Assistant Commissioner's order (paragraph 8).