1985 (1) TMI 345 - HC - VAT and Sales Tax

Revision granted by High Court, turnover adjusted in Sales Tax case for 1975-76.

The High Court allowed the assessee's revision against the Sales Tax Tribunal's judgment for the assessment year 1975-76. The turnover was adjusted to ... Rejection of books of account - best judgment assessment - turnover determination based on accepted production rate (burning period) - remand for recomputation of turnover - sending copy to Tribunal under Section 11(8) of the U.P. Sales Tax ActRejection of books of account - best judgment assessment - Validity of rejection of the assessee's books of account and consequent best judgment assessment. - HELD THAT: - The Tribunal's rejection of the assessee's books of account was considered. Counsel for the assessee was unable to demonstrate any illegality in the Tribunal's conclusion. The High Court found no error in the Tribunal's finding that the books were properly rejected and that, on that basis, a best judgment assessment was justified. [Paras 2]The rejection of the books of account and the consequent best judgment assessment were upheld.Turnover determination based on accepted production rate (burning period) - remand for recomputation of turnover - Correct annual turnover to be fixed in light of the Tribunal's own finding on production rate and burning period. - HELD THAT: - The Tribunal had accepted the burning period and recorded a finding that production at the rate of 100,000 bricks in six days results in an annual production of 13,50,000 bricks. Despite that finding, the Tribunal fixed annual turnover at 15,00,000 bricks. The High Court held that once the Tribunal itself recorded the production-based finding, it was not justified in fixing turnover at a higher figure. The Court therefore set aside the order to the extent of the excess and directed the Tribunal to fix the annual turnover afresh after deducting 1,50,000 bricks from the 15,00,000 figure previously adopted. [Paras 3, 4]The Tribunal's fixation of turnover at 15,00,000 bricks was set aside insofar as it exceeded the production-based finding; the matter was remanded to the Tribunal for recomputation of annual turnover reduced by 1,50,000 bricks.Final Conclusion: Revision allowed in part: the Tribunal's rejection of the books and resultant best judgment assessment is affirmed; the Tribunal's turnover fixation is set aside insofar as it exceeds the Tribunal's own production-based finding and the Tribunal is directed to recompute annual turnover after deducting 1,50,000 bricks; parties to bear their own costs and a copy of this order is to be sent to the Tribunal under Section 11(8) of the U.P. Sales Tax Act. The High Court allowed the revision filed by the assessee against the Sales Tax Tribunal's judgment for the assessment year 1975-76. The Tribunal's rejection of the assessee's books of account was upheld, but the turnover was adjusted to 13,50,000 bricks instead of 15,00,000 bricks. The Tribunal was directed to fix the turnover accordingly, and each party was to bear their own costs. The order was to be sent to the Tribunal as per Section 11(8) of the U.P. Sales Tax Act.