2013 (5) TMI 232

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nt is therefore before this court by filing appeal under section 78 of the Gujarat Value Added Tax Act, 2003 (hereinafter referred to as `the Act' for the sake of brevity). 2. While admitting the appeal, this court formulated the following question of law in relation to the period from 01.04.2004 to 09.05.2005 for consideration and determination: "Whether on the facts and in the circumstances of the case, the Gujarat Value Added Tax Tribunal was justified in upholding the figures of sales of the entire year worked out by the Assessing Officer on the basis of sales of the period between 13th June, 2004 and 24th June, 2004 without pointing out any defects in the accounts maintained by the appellant assessee." 3. As the facts travel, ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....hatt for M/s. Wadia Ghandy & Company, for the appellant and Mr. Rohan Yagnik, A.G.P., who appeared on behalf of the respondent-State. 4.1 Learned advocate for the appellant submitted that the additional demand on the ground of undisclosed sales was without any justification as there was no evidence that taxable sale was concealed in respect of any period. It was submitted that the assessee maintained computerized accounts. It was submitted that the officers estimated the total sales for the entire year on the basis of figures of sales during one week period when officers had stationed at the premises of the appellant. It was therefore submitted that the Tribunal completely misdirected itself in concurring with the order of the Deputy Sal....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....r higher sales only on these days when the officials were regularly visiting the business premises of the appellant." 5.2 The Tribunal committed manifest error in accepting the basis adopted by the Department for arriving at figures of sales and the resultant demand. The sales for the period of seven days could not have been the criteria for assessing and ascertaining the figures of sales for the entire year. In any business, the sales fluctuate for number of reasons and depending upon the market circumstances. The appellant assessee's was a hotel business. Considering the nature of the business of the assessee, the sales would bound to fluctuate more often. It may witness a slack period and at the same time it may went up for host of....