2006 (8) TMI 565

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....ler in ceramic tiles, who, during the accounting year 1998-99, accounted receipt of Rs. 45,80,168 towards service charges and commission received and claimed exemption on the same on the ground that the same does not represent sales turnover of goods. The assessing officer in the course of assessment directed the petitioner to produce documentary evidence towards proof of nature of receipt claimed....

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....er before the Tribunal also. We have heard learned counsel for the petitioner and the Government Pleader appearing for the respondent. The petitioner is admittedly dealing in ceramic products during the year and the petitioner accounted in addition to declared sales price, receipt of Rs. 45,80,168 from a sister concern M/s. Poseidon Food Company. Even though the petitioner put up a specific ....

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....ould have been remitted through bank and we see no reason why the petitioner kept the Department in dark about the financial transaction. In the absence of any proof, even at this stage, the only question to be considered is what is the consequence of an unexplained credit in a traders' account for the purpose of sales tax. We have to straightaway refer to section 12 of the KGST Act, which rea....