1984 (1) TMI 297

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.... Sri Sampoorni Vilas Non-Vegetarian Hotel at Salem. For the year 1975-76, it declared a taxable turnover of Rs. 69,920.50 in its A1 return submitted on 26th March, 1976. The assessing authority after a check of the accounts found that the sales were not supported by bills, that 50 per cent of the provisions purchased during the year were not supported by bills and that the gross profit as per the accounts was only 17 per cent which was considered to be low in a non-vegetarian hotel. The assessing authority took note of the fact that there were certain purchase omissions in respect of rice, tamarind, cocoanuts and chillies. Hence the assessing authority rejected the accounts of the assessee as incorrect and incomplete and estimated a sales t....

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....re, the turnover taxable under that section cannot be the subject-matter of an estimate of best judgment assessment under section 12(2). A conjoint reading of sections 3, 4, 5, 7-A and 12(2) would clearly indicate that section 7-A should also be equated to sections 3, 4 and 5 and as sections 3, 4 and 5 are admittedly charging sections, section 7-A also should be taken as the charging section. The Tribunal has taken the view that there is no provision to estimate the turnover under section 7-A and section 12(2) which applies to the other provisions of the Act like sections 3, 4 and 5 cannot apply to section 7-A. A perusal of section 12(2) would clearly indicate that it is in general terms and it would apply to all the charging sections an....

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....aswami [1975] 36 STC 191 (SC). The Supreme Court took the view that the definition of "dealer" in section 2(g) of the Act includes not only a person who carries on the business of "selling, supplying or distributing goods" but also one who carries on the business of buying only, that section 7-A deals with particular kind' of goods and provides for levy of purchase tax in respect of certain goods under particular situations, that the focal point in the expression "goods, the sale or purchase of which is liable to tax under the Act" in section 7-A of the Act is the character and class of goods in relation to their exigibility to tax, that section 7-A should, therefore, be taken as a charging as well as a remedial provision and that section 7....