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Issues: Whether the Tribunal was justified in enhancing the turnover and treating menthol valued at Rs. 25,00,000 as unaccounted and liable to tax, despite the absence of a foundation in the record and without the Revenue having challenged the earlier finding that Rs. 15,00,000 worth of menthol had been returned and the related finding had become final.
Analysis: The assessing authority had treated only Rs. 15,00,000 of the menthol turnover as inter-State sale, and that finding had attained finality because the Revenue did not appeal. The Tribunal, while accepting that the transaction had been cancelled, proceeded to assess unaccounted menthol turnover at Rs. 25,00,000 without referring to any material or explaining the basis for that figure. A final finding that had not been challenged could not be disturbed indirectly, and the Tribunal could not create a wholly new factual basis for enhancement in the absence of supporting evidence or jurisdictional foundation.
Conclusion: The enhancement to Rs. 25,00,000 was without jurisdiction and unsustainable; the issue is decided in favour of the assessee.
Ratio Decidendi: An appellate tribunal cannot enhance turnover by recording a new factual finding unsupported by the record when the original finding has become final and no jurisdictional basis exists for disturbing it.
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