1970 (7) TMI 71

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....nt 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 authority upheld the validity of the proceeding....

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....wo 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 disparity between the electric consumption shown by the assesse....