1996 (3) TMI 510

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....erala suffered tax to establish the evidence prescribed under rule 32(13) of the Kerala General Sales Tax Rules? 2.. Has not the Tribunal erred in confirming the assessment basing solely on a diary entry of a sales representative sufficient justification in law to treat as taxable turnover at the hands of a registered dealer? 3.. Is not the Tribunal bound to look into the quantum of the turnover with the financial capacity of the dealer and has not the statutory authority decided the legal issue with evidence on record? 4.. The Tribunal being the final fact finding authority is it sufficient justification for it to endorse the assessment without a discussion on the materials available on record. 5.. Do not the non-imposition of ....

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....1984. It is observed that with regard to the year 1977-78 the assessee reported total turnover of Rs. 28,20,839.13 and correspondingly taxable turnover at Rs. 17,25,241.98 as per form No. 8. The assessing officer rejected the accounts reporting the above figures of the turnover.   4.. The reason for reaching this factual conclusion was that during surprise inspections referred to above the seized records, on verification reveal that the purchases are effected from outside the State in the name of fictitious persons. This was revealed from a code worded pocket book. The assessing officer observed that this pocket book related to certain purchases of steel mainly from Trichy Steel Rolling Mills Limited, Trichy. In addition it is ob....

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.... from either of the branches showing the dealer to have advantage in regard thereto. It is observed that numerous irregularities are located in the accounts of the firm for the two years in question are placed as contents of the pre-assessment notice. It is observed that irregularities are very serious and had to be detected by the Intelligence Officer showing clear avoidance of tax liability. Even then for the purposes of examination of the situation in a detailed manner the first appellate authority passed an order of remand. 7.. Even thereafter the authority considered the situation by the order dated November 19, 1990 (annexure E). The entire situation is again carefully considered by the authority and in regard thereto especially in....

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....the pocket books. It is found as a result thereof that on verification of the ledger account maintained by Trichy Steel Rolling Mills Limited it is revealed that they had sold steel in the above names for the periods 1976-77 to 1978-79 and these consignments were purchased by the assessee in fictitious names from Trichy Steel Rolling Mills and sold them to dealers in Kerala. 9.. Thus on reconsideration in view of the above situation taxable turnover for 1977-78 is fixed at Rs. 1,03,44,263.44 (sic) have a round figure of 60 at the end. 10.. Even thereafter this question has received confirmation from the order dated October 30, 1991 of the first appellate authority thereafter [Deputy Appellate Assistant Commissioner (Appeals) of Agricu....

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....n Kerala were handled by Palghat and Trivandrum depots and that there were no direct sales from Trichy to Kerala. A support is sought from annexure G to show the strength of the contents of the above letter. It is urged that with regard to the sales effected through the branches tax is suffered. In our judgment all the authorities have considered the situation and have recorded conclusions in regard to the resort of code language and recorded factual findings relating to the direct sales by the Trichy Steel Rolling Mills Limited in the State of Kerala and not in any way through their branch offices. The question however, couched cannot have the character of being a question of law. The other questions are pure questions of fact and in th....