Best judgment turnover enhancement under central sales tax fails without evidence of suppressed inter-State movement and valid Form F records.

Enhancement of central sales tax turnover on a best judgment basis requires material showing suppressed inter-State movement of goods; absent evidence of concealed sales or prior contract-based movement outside the State, estimated enhancement cannot stand. Form F, with supporting transport and stock records already on the assessment record before the order, could not be disregarded on the ground of non-production, and a contrary finding was perverse. After the amendment to section 6A of the Central Sales Tax Act, Form F remained primary evidence of inter-State movement. The assessee's challenge was therefore accepted and the turnover enhancement and Form F rejection were unsustainable.

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Issues: (i) Whether, in the absence of material showing suppressed inter-State sales, the turnover could be enhanced in central assessment on a best judgment basis. (ii) Whether rejection of Form F was sustainable when the record showed production of Form F and allied transport and stock documents before the assessment order.

Issue (i): Whether, in the absence of material showing suppressed inter-State sales, the turnover could be enhanced in central assessment on a best judgment basis.

Analysis: Rejection of the books had arisen from findings in the State assessment, but no concealed inter-State sale was detected. For central sales tax purposes, enhancement of turnover requires material showing movement of goods from inside the State to outside pursuant to a prior contract of sale. In the absence of such material, enhancement on estimated turnover could not be sustained.

Conclusion: The issue was answered in the negative and in favour of the assessee.

Issue (ii): Whether rejection of Form F was sustainable when the record showed production of Form F and allied transport and stock documents before the assessment order.

Analysis: The original record showed Form F along with receipt or gate pass in Form 9R, bilty, challans, proforma invoice, and stock register in Form 44, all bearing endorsement before the assessment order. Once these documents were already on record, the finding that they had not been produced was perverse. After the amendment to Section 6A of the Central Sales Tax Act, 1956, Form F is the primary and decisive evidence for inter-State movement of goods, and the assessment could not ignore that statutory position.

Conclusion: The issue was answered in the affirmative and in favour of the assessee.

Final Conclusion: The turnover enhancement and rejection of the assessee's claim could not be sustained, and the revision was allowed.

Ratio Decidendi: Enhancement of central sales tax turnover on a best judgment basis requires material showing taxable inter-State movement of goods, and once Form F and supporting documents are already on the assessment record, a contrary finding is perverse.

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