TaxTMI 
TaxTMI 
2003 (1) TMI 683
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....closing a total and taxable turnover of Rs. 4,08,591.98. Similarly for the assessment year 1994-95 the assessee filed a return disclosing a total and taxable turnover of Rs. 8,00,063.31. The assessing authority proposed to reject the returns and the books of accounts for the aforesaid two years and to estimate the turnover to the best of judgment. The reasons stated by the assessing authority for rejecting the books of accounts for the year 1993-94 are as follows: 1.. The assessee has not maintained a manufacturing account in form 25B as provided in the Kerala General Sales Tax Act and Rules. 2.. When considered the average running stock held by the dealer, the sales turnover conceded is very low. The sales turnover conceded is only 1/3 o....
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.... is determined at two times of the returned sales turnover of Rs. 3,45,431, i.e., at Rs. 6,90,862. The purchase turnover is ordered to be estimated at 80 per cent of the sales turnover estimated. The purchase turnover liable to levy of sales tax will be estimated at one fourth of the total purchase turnover estimated. The sales tax assessment of the appellant for the year 1993-94 is reduced. The assessing authority will revise the assessment as per this appellate order." Similarly for the assessment year 1994-95 the first appellate authority had modified the assessment for the year 1994-95 and ordered as follows: "Due to the failure to maintain manufacturing accounts and other defects in the books of accounts the sales turnover of gold or....
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....manufacturing account had observed that non-maintenance of the manufacturing account is a technical defect and that the accounts cannot be rejected for the said reason. The Government Pleader further submitted that the Tribunal has also failed to consider the various other reasons stated by the assessing authority for the rejection of the accounts. He further submitted that the first appellate authority has estimated the turnover keeping in mind the turnover fixed by the assessing authority for the year 1995-96 which aspect was also not borne in mind by the Tribunal. 4.. We have also heard the learned counsel appearing for the respondent-assessee. Though the counsel appearing for the respondent-assessee has sought to justify the order of t....
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....2(2) of the Act mandates the dealer to maintain stock books in respect of raw materials as well as products obtained at every stage of production. If such a stock book is not maintained, it leads to the conclusion that the account books are not reliable or that particulars are not properly verifiable. If the account books are rejected, the turnover has to be determined to the best of judgment of the assessing authority concerned. We are unable to uphold the view that a defect in nonmaintenance of stock register is only technical and so the turnover disclosed in the account books should be accepted. On the facts of a particular case, it is for the assessing authority to consider along with other materials disclosed in the case, to what exten....
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....his nature. Learned counsel submitted that the rule should not be considered as mandatory. Going through the contents of the rule when the rule makes it obligatory on the assessee to maintain accounts with regard to the production giving necessary quantitative details of the various raw materials used for the manufacture as well as the quantitative details of the goods so manufactured it is difficult to accept the submission more so in view of the fact that earlier also in the judgment placed before us the court proceeded to consider the explanation in regard to non-maintenance and passed orders in regard thereto. Independently also it is not possible to accept the submission that the rules are directory in nature when the rule makes provis....