1970 (7) TMI 71

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....ction 7 of the Act. The assessee's account books were accepted and the returned figures of Rs. 28,937 and Rs. 25,112 were accepted as the turnover for the purposes of the U.P. Sales Tax Act and the Central Sales Tax Act respectively. Subsequently the assessment was reopened under section 21 because the consumption of the electrical energy by the assessee in the manufacture of oil was found to be disproportionately high on the basis of a report by an expert of the State Government. In due course, the Sales Tax Officer made two supplementary assessments, one under the U.P. Sales Tax Act and the other under the Central Sales Tax Act, determining the escaped turnover at Rs. 1,40,000 and Rs. 20,000 respectively. On appeal the appellate aut....

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....ee's account books. We shall proceed to answer the two questions separately. The consumption of electricity in the case of the assessee was found to be of the order of 44 units per maund of oil, whereas according to the expert's report, the consumption of electricity varies between 8 to 30 units per maund depending upon the size and quality of the machinery etc. This, in our opinion, constituted good material for initiating proceedings under section 21. Section 21 only requires that the assessing authority should have reason to believe that some turnover has escaped assessment. He is not required to record a positive finding about the escapement at the time of the initiation of the proceedings. The fact that there was sizeable dispari....

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....detect one instance where the assessee might have understated its sales, he would have been justified in rejecting the accounts and making an estimate of the escaped turnover, but we find that beyond pointing out the high consumption of electricity, the assessing authority has placed no material on the record which might point towards the escapement of the turnover. As has been observed by the judge (Revisions) in his order under section 10(3), the consumption of electricity varies with the size and the type of the expellers, their age and many other factors like voltage etc. It has also been observed by the Judge (Revisions) that the consumption of electricity is more in the case of barrey oil and linseed oil than in the case of mustard oi....