2001 (3) TMI 998

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.... order of the Sales Tax Appellate Tribunal, Ernakulam in T.A. No. 370 of 1996. Revision petitioner was engaged in arrack business. There were three inspections in the petitioner's shop. It was found that the petitioner was not properly maintaining the account. On inspection, there was a shortage of arrack. As per the records, the shortage was 1,660 litres of arrack, which according to the petition....

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....ment of tax in any event. The discrepancy noticed at the time of the inspection is not by way of excess in the quantity of liquor, but only by way of shortage. From this circumstance of shortage alone, it cannot be inferred that the petitioner has effected unaccounted purchases and effected unaccounted sales. It is noteworthy that the department has not established a single instance of suppression....

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....re not fully and regularly posted because the petitioner involved herself in unaccounted purchases. " A Division Bench decision of this Court in Deputy Commissioner of Sales Tax (Law), Board of Revenue (Taxes), Ernakulam v. Kurian Joseph and P.J. Stephen [1996] 103 STC 186, was cited before us. In that case, on inspection, it was found that there was shortage of 1,435 litres of arrack. "The Tribun....

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....ter argument of the respondent that when offences are compounded, there is a presumption that there is suppression. This is not correct. 3.. On going through the records, we are satisfied that the accounts have not been kept properly. But the only point raised is that when the Revenue gives best judgment assessment, it should be made on certain basis. There should be some materials to show that....