TaxTMI 
TaxTMI 
2011 (7) TMI 998
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the cross-objection filed by the Revenue against the order of the First Appellate Authority granting partial relief to the Assessee. We have heard Counsel appearing for the Petitioner and Government Pleader for the Respondents and have perused the orders and records of the case. 2. The Petitioner is a dealer in timber having Main Office in Tamil Nadu and Branch in Kerala. Timber fully imported from Malasia were first stocked in the go downs of the Petitioner in Tamil Nadu, wherefrom it was stock transferred to the Branch in Trivandrum and sold there. Timber is an item on which tax is payable in advance at the Boarder Check Post when it is brought from outside for sale in Kerala. The payment of advance tax is based on the value fi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e Commissioner in the Circular based on which Petitioner remitted the tax in advance at the Check Post without any contest, concluded that the assessment after rejection of accounts and by estimation of turnover by the officer was well founded. Accordingly, the Tribunal cancelled the first Appellate Authority's order and restored the assessment. It is against the very same order issued by the Tribunal the Petitioner has filed these two revision cases. 3. Counsel for the Petitioner contended that rejection of books of accounts is without any justification and the Tribunal went wrong in sustaining the estimation of turnover made by the Assessing Officer by making 12 per cent addition towards gross profit to the purchase value declar....
X X X X Extracts X X X X
X X X X Extracts X X X X
....essee and the assessment should have been based on books of accounts. 4. After hearing both sides, we do not think the question raised is a question of law which alone can be considered by the High Court in a revision under Section 63 of the KVAT Act. However, in view of the contentions raised by Counsel for the Petitioner that the value declared and the tax paid thereon at the Check Post on entry of goods in Kerala were only based on circular issued by the Commissioner, we proceed to consider the matter in detail. 5. First question to be considered is whether the sales turnover returned by the Petitioner was rightly rejected and if so, whether the estimation of turnover is made on a rational basis acceptable in law. Adm....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... imported has to be fixed by taking into account the purchase cost abroad, shipping freight. Customs Duty, cost of transport to go down, handling charges etc. The imports from abroad are always in bulk, and therefore, it is the Petitioner who works out the cost of goods brought each time to Kerala. The value declared by the Petitioner in the transport document as purchase value is certainly less than the value fixed by the Commissioner in the Circular for payment of tax at the Check Post and mat is why Petitioner claimed refund of tax paid at the Check Post. If the Petitioner had raised objection at the time of collection of tax at the Check Post, the department would have got an opportunity to establish that the value declared in the docum....