2007 (1) TMI 585

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ent and order dated December 10, 2004 by the High Court of Judicature at Allahabad in Trade Tax Revision Nos. 2407 to 2410 of 2004 See page 613 supra.. Heard learned counsel for the parties and perused the record. The appellant was doing the business of manufacture of metallised plastic films. The appellant's unit was holding an eligibility certificate under section 4-A of the U. P. Trade Tax Act, 1948 for the period from February 20, 1995 to February 19, 2003 up to monetary limit of Rs. 66,56,239. The assessing authority rejected the appellant's books of account and enhanced the turnover. The first and second appeals filed by the appellant were rejected. The appellant then filed revisions before the High Court which were also....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e to manufacture 1 kg. goods of 12 micron the consumption of electricity is almost double than the consumption of electricity for manufacture of 1 kg. of 23 micron. It was further explained that the chilling tower was in operation even during the closure of the manufacturing which resulted continuous consumption of power, though manufacturing did not take place and electricity was also consumed in residential area. These explanations have not been accepted by the Tribunal on the ground that it cannot be believed that during the closure of the production the chilling plant kept in operation. The Tribunal further held that though less production was shown but the claim of labour expenses, etc., have not been shown less and the position was sa....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

...., a reasonable inference can, prima facie, be drawn that there was suppression of production and consequently suppression of sales in order to avoid sales tax. The Deputy Commissioner (Appeals) observed that in spite of the several opportunities being given for verification of production from the production register, the labour attendance register and the payment made to the labour the same was not done by the assessee, and the closure of the manufacturing also could not be got verified from the labour attendance register and labour payment register. The appellant also had not maintained separate accounts for its own manufacturing and the job-work, and it could not inform which raw materials have been used in the manufacturing of job-wor....