TaxTMI 
TaxTMI 
1961 (10) TMI 71
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....ircle of the Sales Tax Department embarked upon a whole-time supervision of the actual business activity of the hotels. It is said that respondent 3 to 5 visited the hotels in the early hours of the morning on 22nd November, 1960, and went round all the rooms in the hotel including the kitchen and directed two of the respondents to sit at the counter by the side of the cashier while the other respondents were going round all the rooms and keeping watch and enquiring about the articles of food supplied to the customers. that when the customers came to pay bill, one of the respondents takes the bill, inquires the customer what articles were consumed by him and then reads out the bill and directs the other to note down the amount of the bill o....
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....tel at Samarangam Chowk and Welcome Coffee Club at Gandhinagar, Vijayawada town. In the counter filed by the Special Commercial Tax Officer (Evasions), Vijayawada, it was admitted that the sales of these hotels were "intensively" watched on 22nd November, 1960, by the Inspectors named therein in obedience to the programme issued by the Special Assistant Commercial Tax Officer (Evasions) for shop-watch, Sri J. B. Raja Rao. It is stated that the turnover returned by the dealer for 1958-59 was not accepted and the assessment was enhanced, and similarly suppression by way of not accounting certain purchases was noticed for the year 1959-60, during cross-check verification and the assessment for the year is pending finalisation. It was stated....
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.... to take rest. It is therefore seen that virtually two of the C.T. Inspectors were watching the shop throughout the day. With respect to the allegation that the C.T. Inspectors remained at the counter, the deponent admitted that the C.T. inspectors remained at the counter, but stated that they caused no hindrance to the customers. But the allegation that the C.T. Inspector takes the bill, enquires the customers as to what articles they have consumed and then reads out the bills and directs the other to note down the amount of the bill on a paper, has been denied. So was the allegation that the statements were taken from the petitioners forcibly. It was contended that these statements were given voluntarily by the petitioners. To quote the w....
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....s Tax Act (VI of 1957) to keep a continuous watch on the hotels of the petitioners and to supervise the same. Section 28(2) is in the following terms: "All accounts, registers and other documents maintained by a dealer in the course of his business, the goods in his possession, and his offices, shops, godowns, vessels or vehicles shall be open to inspection at all reasonable times by such officer." It is contended on behalf of the petitioners that this section merely authorises the Sales Tax Authorities to inspect all accounts, registers and documents maintained by the dealer in the course of his business and the goods in his possession or his offices, shops or godowns; and secondly, they are only authorised to inspect and not to keep a ....
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....ehicles apart from the goods in the possession of the dealer. We have no hesitation in rejecting that contention of the learned Advocate. But at the same time. we cannot accept the contention of the learned Government Pleader that there is no difference between inspection and keeping a watch, and that the section authorises the continuous watching of the business on the premises of the dealer from the time the business commences to the time it ends. Apart from the question that the words "inspection" and "watch" connote different meanings, the words "at all reasonable times" would indicate not a continuous process throughout the entire day, but only at certain times which, in the circumstances of the particular case, are reasonable. The ant....